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China manufacturing growth moderated in July, PMI still signals expansion
The RatingDog China General Manufacturing PMI fell to 50.9 from 51.7, while new orders rose for the 14th straight month and export orders returned to growth after two months of contraction.
China’s private manufacturing sector stayed in expansion territory for a ninth straight month in July, but growth cooled from June, according to Action Forex’s review of the RatingDog China General Manufacturing PMI.
The PMI slipped to 50.9 from 51.7, the lowest reading in four months, though it remained above the 50 threshold. ActionForex.com said the expansion continued for the longest stretch of manufacturing growth in five years, with all five PMI components contributing positively for a second consecutive month.
While the slowdown reflected softer growth across multiple indicators, total new orders increased for a 14th consecutive month, matching the longest expansion since 2018. Manufacturing output also expanded for an eighth straight month, and new export orders returned to growth after two months of contraction, supporting a more constructive external demand signal.
The survey showed hiring increased for a second straight month, albeit with modest employment gains. It also pointed to easing inflation pressures, with input cost inflation slowing to a six-month low and firms largely keeping selling prices unchanged, while business confidence improved slightly on expectations of stronger demand and product and capacity plans.