China''s Manufacturing Contracts in July: PMI Data

Beijing, Jul 31 (AP) A closely watched measure of Chinese manufacturing activity remained negative in July as concern persists about the state of the world's second largest economy.

The Purchasing Managers' Index, based on a survey of factory managers, slipped 0.1 points to 49.4, the National Bureau of Statistics said Wednesday. It was the third straight monthly reading below 50, a level that indicates a contraction of manufacturing activity.

A parallel purchasing managers' index for the service sector also fell 0.3 points, though it remained in positive territory at 50.2.

The Politburo, a top body of China's ruling Communist Party, warned Tuesday that the coming months would be tough and promised unspecified measures to restore confidence in financial markets and boost government spending. (AP)