China manufacturing growth eases in July - RatingDog
By Michele Maatouk
Date: Monday 03 Aug 2026
(Sharecast News) - Growth in China's manufacturing sector eased in July as output and new orders grew more slowly, according to a private survey released on Monday.
The RatingDog China general services purchasing managers' index, compiled by S&P Global, fell to a four-month low of 50.9 from 51.7 in June. The index was in expansionary territory for the eighth month in a row, but came in below expectations for a reading of 51.5.
A reading above 50.0 indicates expansion, while a reading below signals contraction.
On Friday, the official manufacturing PMI from the National Bureau of Statistics came in at 49.2 for July, down from 50.3 in June and missing consensus expectations for a reading of 50.0.
RatingDog founder Yao Yu said: "On a sub-index basis, the pace of improvement moderated. Total new orders increased for the fourteenth consecutive month, the longest sequence since 2018, though the rate of growth eased. New export business rose for the first time in three months, returning to expansionary territory. Manufacturing output expanded for the eighth successive month, albeit at a softer pace.
"On the price front, cost pressures continued to ease. Input price inflation slowed to a six-month low. Output prices were broadly flat, with firms refraining from raising charges. Suppliers' delivery times lengthened for the fifth month running, but the extent of delays was only marginal. Stocks of purchases rose for the eighth consecutive month, the longest sequence since 2006-2007, prompting firms to reduce purchasing activity for the first time since November 2025."
Yao Yu said business sentiment about the outlook for the next 12 months improved slightly from June, supported by expectations of stronger market demand, new product development and expanded production capacity.
"Overall, the manufacturing sector continued to expand in July, albeit at a slower pace. Sustained new order growth and further easing of cost pressures provided support, while the return of new export orders to expansion was a positive signal. However, the reduction in purchasing activity and ongoing accumulation of input stocks warrant attention. The manufacturing PMI is expected to remain in expansionary territory in the near term, though the pace of growth may become more moderate."
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