August 1, the China Federation of Logistics and Purchasing says purchases of manufactured products is down for the 4th month in a row.

The main reason is the continuing inflation in prices of basic resources, which is causing prices for manufactured goods to go up.   Despite efforts by the Chinese government to control inflation, the inflation rate is exceeding their expectations.

Currently the purchase of manufactured goods (PMI) is stagnating at 50.7.  Anything below 50 is bad.  In previous years China’s PMI was well above 50, but this year it’s been falling.