AsianFin--China's economic output continued to grow in July as the business outlook remained optimistic, but seasonal factors including heat waves and floods somewhat dragged down the expansion.

The composite PMI output index stood at 50.2 this month, mildly down from 50.5 in June. The manufacturing PMI inched down to 49.4, and the PMI for the service and construction sectors combined retreated to 50.2, according to the purchasing managers' index (PMI) released Wednesday by the National Bureau of Statistics (NBS).

A PMI reading above 50 indicates expansion, while a reading below 50 reflects contraction.

Commenting on the data, NBS senior statistician Zhao Qinghe said business activities saw a slowdown in expansion.

The manufacturing sector registered a slightly lower business climate due to unfavorable factors including the traditional slack season, insufficient market demand, and extreme weather conditions, he said, adding that high temperatures and floods also dampened the construction sector.