China Rating Dog PMI (July 2026) 50.4 (expected 53.7)

AI summary

<p></p><p class="font-claude-response-body break-words whitespace-normal" dir="ltr">The scale of the deceleration, from 54.1 to 50.4, is the sharpest single-month drop highlighted in the release and pushes the headline reading to its lowest since September 2024, a signal likely to reinforce concerns about the durability of China's domestic demand recovery. The composite output index falling to a one-year low of 50.8 suggests the slowdown is not confined to services, with manufacturing also losing momentum, which could weigh on sentiment toward China-exposed assets more broadly. Resilient export growth, with new export business holding at 52.0, offers a partial offset and suggests external demand remains a relative source of strength even as domestic activity cools, a divergence markets may watch closely given ongoing global trade dynamics. The continued easing in input cost and output price inflation to multi-month lows, even as employment extended its longest growth streak since 2023, points to a labour market holding up better than activity growth, which could complicate the read on underlying momentum for policymakers weighing further stimulus.</p><p class="font-claude-response-body break-words whitespace-normal" dir="ltr">---</p><p class="font-claude-response-body break-words whitespace-normal" dir="ltr"> China's service sector growth slowed sharply in July to its weakest pace in nearly two years, even as exports and hiring held up better than domestic activity.</p><p cla