TMTPOST--China's private Caixin Manufacturing Purchasing Managers' Index (PMI) fell to 49.8 in July, a decrease of two points from the previous month, according to data released by Caixin on Thursday. A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction. This decline follows China's official factory activity data from the National Bureau of Statistics (NBS), which reported a PMI of 49.4 for July. This is the first time the Caixin Manufacturing PMI has fallen below the expansion threshold since November 2023. In July, manufacturing output growth slowed to its lowest pace in nine months, largely due to the first decline in new orders in a year. Companies attributed the drop to subdued demand and reduced client budgets. Although export orders continued to rise, the growth rate slowed to a modest pace compared to June, according to the Caixin report.