China is in the midst of a historic summer heat wave—temperatures in Shanghai hit their highest in 145 years on July 21. However, the country’s economic growth, which surprised on the upside in the first half of the year, is suddenly looking less hot. China’s official factory and services sector gauges both ticked down in July—the first concerted decline since April, although both indexes remained in positive territory. More important, the purchasing managers’ indexes contained hints that two of the most bullish factors...

Source: Wall Street Journal July 31, 2017 04:18 UTC