In July 2020, despite the hindrance experienced due to flood and second wave of COVID-19, there was an increase in the factory activity. This boosted the official manufacturing Purchasing index from 50.9% in June to 51.1% in July 2020.
China was able to recover from the strict lockdown which was said to weaken the Chinese economy. The new export orders dropped at a lower rate as compared to June 2020. This is because of the continued pressure on external demand.
Companies also fired more employees that they hire.