The RatingDog China General Manufacturing Purchasing Managers’ Index (PMI) landed on a decreased 50.9 adjustment in July, missing the 51.9 target.
The indicator designed to provide an overall view of activity in the manufacturing sector also informs the whole economy.
In June, the PMI, compiled by S&P Global from a monthly survey of about 430 purchasing managers who rate the relative level of business conditions—including employment, production, new orders, prices, supplier deliveries, and inventories—was at 51.7, but it fell to 50.9 in July. 
“The PMI eased to a four-month low of 50.9, from June’s 51.7. The current upturn is the joint-longest in five years, matching the expansion from November 2023 to June 2024. The PMI had positive contributions from all five components for the second month running,” RatingDog said.
Yao Yu, Founder at RatingDog, was quoted as having said, “The RatingDog China General Manufacturing PMI registered 50.9 in July 2026, easing from 51.7 in June. The current expansion is the joint longest in five years, matching the sequence from November 2023 to June 2024.”
The RatingDog China PMI, above the 50.0 mark and maintained for the eighth month running in July, indicates an expanding manufacturing economy with improved manufacturing conditions, as opposed to a PMI below 50.0, which indicates that the manufacturing economy is declining.
Improvements in manufacturing business conditions in China in July saw output, new orders and employment rising.
“The volume of new orders received by Chinese manufacturers rose for the fourteenth month running in July, the longest sequence since 2018.
“Higher new orders reflected stronger market demand, increased international orders, new business channels and improved product quality,” Yu said.
China’s growth rate eased since June, overshadowing the stronger market demand, export growth, expanded capacity and new products – the first rise in new export business – but the July rise extends the current period of expansion to eight months.
Employers in the manufacturing sector raised employment for the second month running. It is reported that the rate of job creation was the strongest since August 2023.
