China

China Manufacturing PMI Rises to 51.5 as Factory Activity Strengthens

China’s manufacturing sector expanded at a faster pace in August, providing a positive signal for the world’s second-largest economy as factory demand, production and exports improved.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, rose to 51.5 from 50.9 in July, beating expectations of 51.0. A reading above 50 indicates expansion.

Factory output increased at the fastest pace in three months, supported by stronger demand and additional production capacity. New orders also accelerated, while new export business recorded its strongest increase in six months.

Overall, the RatingDog data are moderately positive for China’s growth outlook and could support sentiment toward Chinese equities and industrial commodities, although weak domestic demand and persistent pricing pressure remain important risks.
China’s Manufacturing PMI Improves in August, but Broader Economy Remains in Contraction

China’s manufacturing activity improved more than expected in August, but the latest PMI data showed that the broader economy remained below the key 50-point threshold separating expansion from contraction.

The official Manufacturing PMI rose to 49.8 from 49.2 in July, beating market expectations of 49.5. The improvement brought the factory sector close to stabilization, although the sub-50 reading indicates manufacturing activity continued to contract.

The picture was weaker in services and other non-manufacturing industries. China’s Non-Manufacturing PMI remained at 49.0, below the 49.5 forecast and unchanged from the previous month.

Meanwhile, the Composite PMI edged up to 49.5 from 49.3. Despite the improvement, it also remained in contraction territory.

Overall, the August figures suggest that conditions in Chinese manufacturing are improving, but weakness in the services side of the economy continues to constrain the recovery. The mixed data could maintain pressure on Chinese policymakers to provide additional support for domestic demand and economic activity.
China Holds Five-Year Loan Prime Rate at 3.50% in August

China kept its five-year Loan Prime Rate (LPR) unchanged at 3.50% in August, matching both market expectations and the previous month’s level.

The decision signals that Chinese policymakers are maintaining current borrowing-cost settings despite continued concerns about economic momentum and the property sector.
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China’s Economy Loses Momentum in July as Industrial Output and Investment Weaken

China’s economy showed further signs of losing momentum in July, with industrial production slowing, unemployment rising and fixed-asset investment contracting more sharply than expected.

Industrial production increased 4.5% year-over-year in July, below the 5.0% forecast and slowing from 5.3% in June. Industrial output for the January-July period was up 5.3% from a year earlier.

The unemployment rate increased to 5.2% from 5.0%, exceeding expectations of 5.1%. Meanwhile, fixed-asset investment fell 6.7% year-over-year in the first seven months of 2026, worsening from the previous 5.7% decline and exceeding expectations for a 6.2% contraction. The property sector remained a major drag, with real-estate development investment falling 19.2%.

The weaker figures add to evidence that China’s recovery remains uneven, with subdued domestic demand and the prolonged property downturn weighing on activity despite strength in exports and technology-related sectors. The slowdown could increase pressure on Beijing to provide additional policy support during the second half of the year.
China New Loans Contract by 340 Billion Yuan in July, Missing Forecasts Sharply

China’s new yuan loans fell by 340 billion yuan in July 2026, a substantially weaker result than the expected 50 billion yuan contraction and a dramatic reversal from the 1.61 trillion yuan increase recorded in June.
China Inflation Cools in July as CPI Falls and PPI Growth Slows

China's inflation data weakened in July, with consumer prices falling on a monthly basis and both CPI and producer-price growth coming in below expectations.

The Consumer Price Index fell 0.1% month-over-month in July, missing expectations for a 0.2% increase. However, the decline moderated from the 0.3% drop recorded in June.

On an annual basis, CPI increased 0.5%, below the 0.8% consensus estimate and slowing from 1.0% previously.

Producer prices also showed softer inflation. The Producer Price Index rose 3.5% year-over-year, below expectations for a 3.9% increase and down from 4.1% in the previous month.

The figures point to easing price pressures across the Chinese economy. The combination of weaker consumer inflation and slowing producer-price growth may reinforce concerns about the strength of domestic demand, while also giving policymakers greater flexibility to support economic activity if growth loses momentum.
China Trade Surplus Beats Expectations as Export Growth Remains Strong

China’s trade surplus came in above expectations in July, supported by stronger-than-forecast export growth, although both exports and imports slowed from the previous month’s pace.

* Trade Balance: $112.50 billion
* Forecast: $108.60 billion
* Previous: $125.62 billion
* Exports (YoY): +23.9%
* Forecast: +22.2%
* Previous: +27.0%
* Imports (YoY): +27.5%
* Forecast: +27.9%
* Previous: +36.0%

Exports increased 23.9% year over year, beating expectations despite moderating from June. The result suggests overseas demand for Chinese goods remained relatively strong in July.

Imports rose 27.5%, slightly below forecasts and well below the previous month’s 36% increase. The slowdown may indicate some moderation in domestic demand, although import growth remained elevated in absolute terms.

China’s trade surplus narrowed to $112.5 billion from $125.62 billion but remained larger than the $108.6 billion expected by markets.

Overall, the report presents a mixed but relatively resilient picture of Chinese trade. Stronger-than-expected exports are positive for manufacturing and industrial activity, while softer import growth could renew questions about the strength of domestic demand.
China Services PMI Falls Sharply in July, Signaling Weakening Services Activity

China's services sector lost significant momentum in July, with the RatingDog Services PMI falling well below expectations.

The index came in at 50.4, missing the 53.7 consensus forecast and declining sharply from 54.1 in June. Although the reading remains slightly above the 50-point threshold that separates expansion from contraction, it indicates that growth in China's services sector slowed markedly during the month.
China's Manufacturing Activity Contracts Again as PMI Misses Expectations

China's manufacturing sector slipped back into contraction in July, adding to concerns over the strength of the country's industrial recovery and highlighting persistent weakness in domestic and external demand.

The official Manufacturing Purchasing Managers' Index (PMI) fell to 49.2 in July, below economists' expectations of 50.1 and down from 50.3 in June. A reading below 50 signals contraction in manufacturing activity, indicating that factory conditions weakened after briefly returning to expansion in the previous month.

The weaker-than-expected reading suggests Chinese manufacturers continue to face headwinds from subdued domestic consumption, soft export demand and ongoing pressures in the property sector. The decline also raises questions about the sustainability of China's economic recovery during the second half of the year.
China's Industrial Profits Growth Eases Slightly in June, Signaling Stable Manufacturing Momentum

China's industrial sector maintained solid profitability in the first half of the year, although profit growth eased marginally in June, pointing to stable but moderating momentum across the country's manufacturing base.

Year-to-date industrial profits rose 18.7% through June, slightly below the previous reading of 18.8%. While the decline was minimal, it suggests that profit growth has begun to stabilize following a strong rebound earlier in the year.
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