The fields of construction and machinery got dragged into contraction.
Asia's chemicals sector leveled up with the highest manufacturing growth at 54.7 in July, according to Nikkei's Asia Sector.
The growth in the sector has been the highest in over six years, which has brought in a rise in new business inflows.
Based on rankings of the Purchasing Managers' Index (PMI), healthcare services and beverages and food followed with the highest growth at 54.0 and 53.8, respectively.
Forestry & paper products also reached a seven-month high, whilst transportation hit its highest in two months.
However, other fields ended their growth streak and fell into contraction.
Insurance dropped for the first time since November at 49.3.
Construction and materials ended its ten-month growth with 48.9, whilst machinery halted a nine-month output rise at 46.8.
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