China factory growth slows to 4-month low in July, survey shows

• China's manufacturing sector expanded at its slowest pace in four months in July.
• The RatingDog China General Manufacturing PMI fell to 50.9 in July from 51.7 in June.
• Growth in new orders slowed to its weakest pace since January.
• New export orders returned to growth after contracting in May and June.
• Input price inflation slowed to a six-month low.

China's manufacturing sector expanded at its slowest pace in four months in July, as output and new orders rose more slowly, according to a private-sector survey by S&P Global. The RatingDog China General Manufacturing Purchasing Managers' Index (PMI) fell to 50.9 in July from 51.7 in June, missing analysts' forecasts. This follows an official survey that showed factory activity unexpectedly slipped into contraction in July, reinforcing concerns over slowing growth and weak domestic demand.

Growth in new orders slowed to its weakest pace since January, though new export orders returned to growth after contracting in previous months. Manufacturers added staff for the second consecutive month at the fastest pace since August 2023. Input price inflation eased to a six-month low, while output prices remained broadly flat. Firms expressed optimism about future output over the next 12 months.

China's leaders have pledged to support the slowing economy by accelerating fiscal spending on infrastructure projects, rather than implementing major new stimulus measures. The country's second-quarter economic growth was 4.3%, the slowest in over three years and below the lower end of the full-year target.