FX.co ★ China’s Factory Growth Cools as July PMI Eases to 50.9

China’s manufacturing expansion slowed in July, as the RatingDog Manufacturing Purchasing Managers’ Index (PMI) eased to 50.9 from 51.7 in June 2026. The latest reading, updated on 3 August 2026, indicates that while the sector is still growing, the pace of expansion has weakened compared with the previous month.

The move from 51.7 to 50.9 keeps the index above the 50-point threshold that separates growth from contraction, suggesting that Chinese factories remain in expansion territory, albeit with softer momentum. Markets and analysts will be watching upcoming data closely to assess whether July’s moderation reflects a temporary pause or the start of a more sustained cooling in manufacturing activity.

The July 2026 figure follows a stronger performance in June 2026, when the index stood at 51.7. The sequential decline highlights emerging headwinds for China’s industrial sector, even as it continues to register overall growth. Further details on the July survey components were not provided.