BEIJING: China's factory activity unexpectedly slipped into contraction in July, pressured by shrinking new orders that reinforced concerns over slowing economic growth, weak demand at home and elevated production costs. It missed the median forecast for 50 in a Reuters poll. The non-manufacturing PMI, which includes services and construction, also contracted, declining to 49 from 50.2 in June. The composite PMI came in at 49.3 compared with a 50.6 reading the previous month. The grim readings underscore the headwinds confronting the economy, with growth already slowing in the second quarter despite solid external demand.