China Manufacturing at 28-month Low: HSBC

BEIJING — Manufacturing activity in China contracted for the first time in a year in July to hit a 28-month low, early HSBC data showed Thursday, the latest sign monetary tightening measures are being felt.

However, the figures also indicated that despite several interest rate hikes aimed at tempering stubbornly high inflation the cost of raw materials continued to rise.

HSBC's preliminary purchasing managers index fell to 48.9 in July from a final reading of 50.1 in June, the British banking giant said.