FX.co ★ China Industrial Output Growth Below Estimates

In July 2025, China's industrial production witnessed a year-over-year expansion of 5.7%, marking a slowdown from the 6.8% growth observed in June, which was a three-month high. This figure also fell short of the predicted 5.9%. The July increase represents the most modest rise in industrial production since the previous November, influenced by capacity constraints due to unusually high temperatures and significant rainfall in certain areas. The growth in manufacturing activity decelerated to 6.2% from June's 7.4%. Similarly, mining output saw a reduction in growth, posting a 5.0% increase compared to 6.1% in the prior month. Conversely, growth in the production of electricity, heat, gas, and water gained momentum, increasing from 1.8% to 3.3%. Among the 41 major manufacturing industries, 35 reported growth, with notable performances in sectors such as automotive (8.5%), computers and communications (10.2%), railway and shipbuilding (13.7%), non-ferrous metal smelting and rolling (6.8%), chemical products (7.2%), coal mining and washing (4.2%), oil and gas (4.1%), food manufacturing (5.6%), and heat production (3.4%). On a monthly basis, industrial output increased by 0.38%. During the first seven months of 2025, industrial production recorded a 6.3% rise.