China's Manufacturing Slump: Worries Persist as PMI Stays Negative

China's manufacturing activity remained in contraction territory in July with the Purchasing Managers' Index (PMI) slipping to 49.4. This marks the third consecutive month below the 50-point threshold, indicating ongoing challenges for the world's second-largest economy. The service sector index also dropped slightly but stayed positive.

Concerns about the health of China's economy continue to mount as a key measure of manufacturing activity remained negative in July. The Purchasing Managers' Index (PMI) slipped 0.1 points to 49.4, reflecting a contraction in manufacturing for the third straight month, according to the National Bureau of Statistics.

In a parallel development, a PMI for the service sector experienced a slight decline of 0.3 points, but held just above the contraction threshold at 50.2.

China's Politburo, the ruling body of the Communist Party, cautioned on Tuesday that the upcoming months would be challenging. The body pledged unspecified measures to bolster financial market confidence and increase government spending in an effort to stabilize the economy.

(With inputs from agencies.)