China’s manufacturing sector showed resilience in July despite a decline in the official Purchasing Managers’ Index (PMI), with high-tech and equipment manufacturing continuing to support industrial activity. Data released by the National Bureau of Statistics (NBS) showed China’s manufacturing PMI reached 49.2 in July, down 1.1 points from the previous month and below the 50-point threshold separating expansion from contraction.

NBS statistician Huo Lihui attributed the decline to several temporary factors, including a higher comparison base following strong manufacturing growth in the previous period and the traditional seasonal slowdown affecting some industries.

While overall manufacturing activity softened, technology-driven industries continued to expand, highlighting the changing structure of China’s industrial economy.

The production side of the sector remained relatively stable, with equipment manufacturing recording a PMI of 51.4 and high-tech manufacturing reaching 53.3, both indicating continued expansion.

Industries including general equipment manufacturing and computer, communication and electronic equipment manufacturing reported production and new order indexes above 53.0. These figures indicate strong demand conditions and continued growth in sectors closely linked to automation, electronics and advanced manufacturing technologies.

For the packaging industry, these trends are significant. Equipment manufacturing and high-tech production are closely connected to packaging automation, smart machinery, robotics, digital printing systems and advanced processing technologies. Continued investment in these areas supports demand for more efficient and connected packaging solutions.

• Manufacturing PMI: 49.2 in July, down 1.1 points month-on-month.
• Equipment manufacturing PMI: 51.4, maintaining expansion.
• High-tech manufacturing PMI: 53.3, showing stronger growth momentum.
• Key growth areas: Electronics, communications equipment and industrial technology.
• Packaging impact: Continued demand for automation and advanced production systems.

Beyond manufacturing, China’s non-manufacturing business activity index also declined, reaching 49.0 in July, down 1.2 points from the previous month. However, several service sectors continued to perform strongly.

Postal services, telecommunications, broadcasting, satellite transmission, culture, sports and entertainment services all remained in the high prosperity range, with activity indexes above 55. These sectors reflect continued demand for digital services and consumer-related activity.

According to He Hui, vice-president of the China Federation of Logistics and Purchasing, improving weather conditions and continued summer consumption are expected to support recovery in construction and consumption-related services.

For global packaging suppliers and manufacturers, China’s industrial performance remains a key indicator. The country continues to play a central role in packaging machinery production, material manufacturing and supply chain development. While short-term fluctuations remain, continued expansion in high-tech manufacturing suggests ongoing opportunities for companies involved in smart packaging, automation and advanced production systems.

The July PMI results underline a broader transition within China’s manufacturing sector. Traditional production areas may face cyclical pressure, but technology-intensive industries continue to demonstrate resilience and provide momentum for future industrial growth.