Production slowdown adds to economic woes

Flash PMI figures indicate growth in industrial deflation, sharp decline in commodity prices

A key economic survey has predicted China's July manufacturing activity to contract the most in 15 months, driven by rising industrial deflation and dropping commodity prices.

The study, conducted jointly by Caixin Media Co Ltd and Markit Ltd, suggests the foundations of the current economic recovery are still fragile and is urging for more policies to support an economic rebound.