China’s non-manufacturing sector slows in July ’25

China’s non-manufacturing business activity index stood at 50.1 per cent in July, down 0.4 percentage points from the previous month, according to official data announced on Thursday.

The slowdown was driven by weaker performance in both construction and services. The construction activity index dropped sharply to 50.6 per cent, a 2.2-point decrease from June, while the services index edged down to 50.0 per cent.

Railway transport, air transport, postal services, culture, sports, and entertainment all maintained strong growth above 60.0 per cent. Conversely, real estate and residential services remained in contraction below the critical point.

The new order index for the non-manufacturing sector declined to 45.7 per cent, reflecting weakening demand. Construction new orders fell to 42.7 per cent, down 2.2 points from June, while services dropped to 46.3 per cent.

Input costs showed mixed movement. The overall input price index rose slightly to 50.3 per cent. Construction input prices surged to 54.5 per cent, up 6.2 points, whereas service input prices slipped to 49.6 per cent.

Sales prices, however, remained under pressure. The overall sales price index declined to 47.9 per cent. The construction sector saw a slight improvement, with its index rising to 49.2 per cent, while services fell to 47.7 per cent.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama