China's July PMI gauges fell below 50 as orders weakened, services and construction contracted, and smaller manufacturers faced increasing pressure. The official gauges of manufacturing, services, and construction fell into contraction, adding to evidence of shrinking orders, job insecurity, and weak household spending. The index for nonmanufacturing activity, which covers services and building, fell to 49.0, while the composite output index dropped to 49.,3. The decline was broad, with new factory orders weakened more sharply than production. High-tech and equipment manufacturing remained expanding, while consumer-goods manufacturing, energy-intensive industries, and small companies contracted. The weaker factory demand is also affecting workers.