🗞️ THE DAILY INDEX - 3rd August 2026

China's factories just went into reverse. The official gauge of Chinese manufacturing activity — a monthly survey of purchasing managers that tells you whether factories are expanding or shrinking — fell to 49.2 in July, dropping below the 50-point line that separates growth from contraction for the first time in four months. That's a genuine dent in the world's second-largest economy, and it lands the same week Washington confirmed its own economy is doing something uncomfortable: growing slowly while prices climb faster than expected. Today's Daily Business Index — our daily 0–100 reading of global business health, where 50 is neutral — sits at 52.2, down slightly from 53.0. Wall Street's Friday rally and a surprisingly cheerful American consumer are holding the line, but the cracks are showing.