The Chinese economy, the second largest in the world, appears to be slowing down.

The so-called purchasing managers index, which reflects economic activity, fell to 50.4 points in July, according to the Chinese statistics agency NBS.

That is the lowest level since February 2020, the month in which China first shut down due to the emerging corona virus.

The decline in the index is caused by a shortage of certain raw materials, repair work on machines and extreme weather.

For example, there were floods in the Henan province, where FoxConn makes iPhones for Apple, among other things.

At least 70 people died in the floods.

Although activity fell, there was no sign of a contraction in economic activity.

A reading of 50 or more points to growth, below that to contraction.

According to the Chinese statistics bureau NBS, the index shows that the economy is still growing, but the speed is slowing down.

One of the worries is export. China has been called the factory of the world and has overcome the initial economic blow of the corona crisis by exporting products to other countries. However, Saturday's purchasing managers index shows that exports have contracted for the third month in a row.