July PMI data show China, France weakening as Germany gains

Manufacturing purchasing managers' data released on Monday revealed a fragmented global industrial landscape in July, with expansion in some major economies contrasting sharply with renewed weakness in others. China's factory sector slowed to a four-month low, France slipped back into contraction, and Britain's growth moderated, while Germany and Australia showed relative strength.

China and France Weaken

China's RatingDog Manufacturing PMI, compiled by S&P Global ↗ 1.01%, fell to 50.9 in July from 51.7 in June, missing analysts' forecast of 51.5 and marking the slowest expansion in four months. New orders growth slowed to its weakest pace since January, though export orders returned to growth after two months of contraction. An official survey released on Friday had already shown factory activity unexpectedly slipping into contraction, reinforcing concerns over weak domestic demand.reuters

In France, the manufacturing sector contracted outright, with the PMI dropping to 49.8 from 51.2 in June. New orders fell for a third straight month while export demand posted its steepest decline in a year. "France's manufacturing sector is struggling once again as inflationary pressures and weak confidence undermine order books," said Joe Hayes, Senior Principal Economist at S&P Global Market Intelligence.whtc

UK Eases, Germany and Australia Expand

Britain's final manufacturing PMI eased to 51.9 from 52.5 in June, a four-month low and a downward revision from the flash estimate of 52.8. The decline largely reflected a steep reduction in stocks of purchases, slower hiring, and easing supplier delivery times rather than weakening demand. Output growth actually accelerated to its fastest pace in nearly two years. The breakdown of a U.S.-Iran truce in mid-July and a Houthi naval blockade declaration pushed oil prices higher toward the end of the survey period.actionforex+1

Germany's flash manufacturing PMI rose to 52.2 in July from 50.3 in June, well above the market expectation of 50.5. The reading marked a return to firmer growth territory for Europe's largest economy after months of marginal expansion. Australia's flash manufacturing PMI ticked up to 51.7 from 51.5, its strongest since January.tradingeconomics+2

Outlook Remains Uncertain

The mixed data underscores diverging recoveries shaped by geopolitical risks, energy prices, and uneven demand. China's leaders pledged at a late-July meeting to support the slowing economy by accelerating fiscal spending on already-budgeted infrastructure projects rather than introducing major new stimulus. Markets now turn to upcoming U.S. employment data and central bank meetings for further direction on the global growth trajectory.reuters