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China's manufacturing sector contracted slightly in July, survey data from IHS Markit showed Thursday.
The Caixin factory Purchasing Managers' Index rose to 49.9 in July from 49.4 in June. A reading below 50 indicates contraction.
Production was little-changed following a decline in June amid a slight increase in overall new orders, the survey showed. However, subdued demand conditions prompted firms to lower their workforce numbers again in July.
Although business confidence improved from June's record low, it remained subdued due to concerns regarding the China-US trade dispute and softer global economic conditions.
