China Factory Activity Growth at 4-Month Low

The RatingDog China Manufacturing PMI declined to a four-month low of 50.9 in July 2026 from 51.7 in June, falling below forecasts of 51.5, as output and new orders grew more slowly. Output continued to rise, while new orders increased for the 14th consecutive month, the longest streak since 2018, supported by stronger foreign sales, which rose for the first time in three months. Meanwhile, employment increased for the second straight month, with job creation reaching its strongest level since August 2023. Delivery times lengthened for the fifth consecutive month, but the extent of the delays remained only marginal. On the price front, input price inflation eased for the third consecutive month to its weakest level since January. Meanwhile, output prices were unchanged after six consecutive months of increases. Finally, business sentiment improved, supported by expectations of stronger market demand, new product development, expanded production capacity, and increased efficiency.





