China Factory Growth Slows to 4-Month Low on Weak Demand; India PMI Hits Near 5-Year Low

Key facts

• China's factory growth slowed to a four-month low in July.
• New orders in China weakened in July.
• Export orders in China rebounded in July.
• India's manufacturing sector expanded at its slowest pace in nearly five years in July.
• Soft demand and reduced job creation impacted India's manufacturing sector.
• Poland's manufacturing downturn eased in July.
• Poland's manufacturing employment increased for the first time in 15 months.
• Input cost inflation moderated in Poland's manufacturing sector.
• Hungary's manufacturing PMI fell to 51.4 in July.
• Hungary's manufacturing production volume and employment increased in July.
• New orders decreased in Hungary's manufacturing sector in July.

Global manufacturing data for July presents a varied picture across different economies. China's factory growth decelerated to its slowest pace in four months, primarily driven by weakening domestic demand, although export orders saw a rebound. India's manufacturing sector experienced its most significant slowdown in nearly five years, grappling with soft demand and a reduction in job creation, as indicated by its Purchasing Managers' Index (PMI).

In Eastern Europe, Poland's manufacturing sector demonstrated signs of recovery, with the pace of its downturn easing. Output and new orders continued to decline, but at a reduced rate compared to previous periods. A notable development in Poland was the increase in employment, marking the first rise in 15 months. Furthermore, the rate of input cost inflation moderated within the Polish manufacturing industry.

Hungary's manufacturing sector also experienced a slight deceleration in its expansion. The country's PMI fell to 51.4 in July from 51.6 in June. Despite a decrease in new orders, both production volume and employment within Hungary's manufacturing industry saw an increase, suggesting resilience in certain operational aspects.