Key facts
- China's factory growth slowed to a four-month low in July, with new orders weakening.
- China's General Manufacturing PMI fell to 50.9 in July from 51.7 in June.
- New export orders for China returned to growth after contracting in prior months.
- India's manufacturing sector expanded at its slowest pace in nearly five years in July.
- India's PMI dropped to 53.5 in July, the lowest since August 2021, due to soft demand and slower job creation.
- New orders in India saw their second-weakest growth rate in over four years.
China's factory growth slowed to a four-month low in July, with the S&P Global PMI falling to 50.9 from 51.7 in June, missing forecasts. While new orders weakened to their slowest pace since January, export orders returned to growth after contracting in prior months. Input price inflation eased, and firms expressed optimism about future output.
Separately, India's manufacturing sector expanded at its slowest pace in nearly five years in July, with its PMI dropping to 53.5 from 54.2 in June. This slowdown was attributed to soft overall demand and a third consecutive month of decelerating job creation. New orders saw their second-weakest growth in over four years, though export orders improved modestly. Business confidence edged up, with firms citing positive expectations around demand and infrastructure projects.
China's leaders plan to accelerate fiscal spending on infrastructure to support the economy, which grew 4.3% in the second quarter, below its full-year target. The 50-mark in PMI readings separates expansion from contraction.