China factory activity shrinks in July, adding to pressure to reverse economic slump

BEIJING (AP) — A survey shows Chinese factory activity contracted in July as export orders shrank. That adds to pressure on the ruling Communist Party to reverse an economic slowdown. A purchasing managers’ index issued by the national statistics agency and an industry group rose to 49.3 from June’s 49 on a 100-point scale but was below the 50-point level that shows activity contracting. Demand for Chinese exports weakened after U.S. and European interest rates were raised to cool record-breaking inflation. At home, consumers are uneasy about possible job losses and are putting off big purchases. Real estate sales, an economic engine, are weak after the government tightened control on the industry’s use of debt.