China's factory growth decelerates to 4-month low | News. az
China's manufacturing output expanded at its weakest pace in four months during July, driven by a deceleration in both production and incoming orders, according to a private-sector survey released on Monday. . . .
China's manufacturing output expanded at its weakest pace in four months during July, driven by a deceleration in both production and incoming orders, according to a private-sector survey released on Monday. On a positive note, export orders managed a slight return to expansion after previously shrinking,Reutersreported. The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 50. 9 in July, down from 51. 7 in June. This reading fell short of the 51. 5 market expectation, though it remained above the critical 50-point mark that divides growth from contraction. This data follows an official government survey published on Friday, which revealed an unexpected contraction in China's factory activity for July. Together, the reports underscore ongoing concerns regarding sluggish domestic demand, rising production expenses, and a broader economicslowdown. RECOMMENDED STORIESNew China-Russia ropeway will connect two border cities in just 6 to 8 minutesMarco Rubio: “Any conflict between the U. S. and China . . . would be catastrophic” -VIDEOChina floods: Gansu landslide death toll rises to 25US expands Chinese forced labor blacklist with biggest addition since 2021In response to the economic headwinds, Chinese leadership pledged during an end-of-July meeting to bolster the economy by speeding up fiscal disbursements for infrastructure projects already included in the budget for the remainder of the year. The government opted for this targeted acceleration over introducing major new economic stimulus packages. Official statistics showed that second-quarter economic expansion slowed to 4. 3%—the weakest performance in over three years—missing the bottom end of the full-year target range of 4. 5% to 5. 0%. According to the RatingDog survey, overall new order growth slipped to its lowest rate since January. Meanwhile, foreign demand posted a minor rebound, with new export orders edging up slightly following contractions in May and June. Employment in the manufacturing sector continued to improve, with firms expanding workforce numbers for the second month in a row. The rate of job creation reached its highest level since August 2023. Inventories of purchased materials climbed for the eighth consecutive month, marking the longest continuous build-up since the 2006–2007 period. This inventory accumulation led companies to trim their purchasing activity for the first time since November 2025. Unfinished business backlogs rose for the sixth straight month, though at the slowest rate recorded over that span. Inflationary pressures on manufacturers softened during the month. Input cost inflation dropped to a six-month low, while output pricing remained essentially flat as companies avoided hiking sales prices for clients. Despite these operational hurdles, manufacturing firms maintained an optimistic outlook regarding production expectations for the coming 12 months. News. AzBy Nijat Babayev