China's manufacturing activity, as measured by a private sector survey, experienced a slight deceleration in July. The RatingDog Manufacturing Purchasing Managers' Index (PMI) registered 50.9, a decrease from June's reading of 51.7. This figure also fell short of market forecasts, which had anticipated a reading of 51.5.
This data point offers insights into the health of China's industrial base, particularly among smaller and medium-sized enterprises. For retail forex and CFD traders, shifts in China's economic indicators can influence commodity prices and currencies like the Australian Dollar (AUD) and New Zealand Dollar (NZD) due to their strong trade links with China. A weaker manufacturing outlook could suggest potential softening in global demand.
The RatingDog Manufacturing PMI, formerly known as the Caixin China Manufacturing PMI, maintains its methodological consistency. S&P Global continues to compile the data from questionnaires distributed to purchasing executives across more than 500 manufacturing firms. The recent change in sponsorship from Caixin to RatingDog in August 2025 does not impact the comparability of the current series with historical data.
Official vs. Private PMI Surveys
It is important to distinguish this private survey from China's official PMI. The National Bureau of Statistics (NBS) compiles the official PMI, which primarily surveys larger, state-owned, and government-affiliated enterprises. In contrast, the RatingDog survey focuses more on the performance of small and medium-sized businesses. This difference in scope means each survey provides a unique perspective on the broader industrial landscape, with the private survey often reflecting conditions in a more market-driven segment of the economy.
The July figures suggest a tempered expansion within China's manufacturing sector, particularly among the smaller firms that the RatingDog index emphasizes, indicating a potential moderation in economic momentum.
📰 Based on reporting from: ForexLive →