Econintersect: China's manufacturing sector reported the lowest PMI (Purchasing Managers' Index) reading in 15 months with a July 2015 Caixin/Markit “Flash” (preliminary) survey result of 48.2. Readings below 50 reflect a contracting manufacturing sector. The low value for the survey result was a surprise. This was down from a June reading of 49.4 and was the fifth consecutive reading below 50. Analysts surveyed by Bloomberg indicated expectations were for a reading of 49.7. 

Chinese companies cut their workforce numbers again in July, but  at a slower rate than in June.  However, output, new orders and new export orders all decreased, while stocks of finished goods and length of suppliers' delivery times all increased.  The entrenched disinflation and deflation in Chinese manufacturing was reflected by continuing declines in both input prices and output charges.

Bloomberg says that the data indicates just how difficult it is for China to deal with the current economic slowdown.

Note: The Caixin Market PMI surveys were previously call the HSBC Markit PMI Surveys.  These monthly surveys cover 420 privately owned manufacturing companies in China.  The official government Manufacturing PMI surveys cover large companies, many of which are government owned enterprises.