China’s factories are slowing as efforts to revive consumer spending flail

(Originally published Aug. 2 in “What in the World“) As another potentially deadly typhoon threatens its eastern seaboard, an independent measure of China’s factory activity confirmed what Beijing has already conceded: the outlook isn’t good.

The Caixin/S&P Global manufacturing purchasing managers’ index, or PMI, for July came in at 49.2, down from 50.5 the month before and the first decline in six months. Any value below 50 represents a contraction. The government’s own PMI for July registered at 49.3.

Meanwhile, provincial governments are telling Beijing that consumption vouchers, issued in hopes of reviving spending, aren’t working.