China's vehicle inventory alert index rises in July

BEIJING - China's vehicle inventory alert index, which reflects the inventory pressure on automobile dealers, rose 4.9 percentage points month-on-month in July, industrial data showed.

The index stood at 54.4 percent last month, up 2.1 percentage points from a year ago, according to the China Automobile Dealers Association.

A higher reading indicates weaker market demand, higher inventory pressure and greater risks. The month-on-month rise is mainly due to slowing market demand after robust growth in car sales in June, said the association.

The sub-index for inventory, market demand and average daily sales dropped in July, while the employee index and operating condition index rose month-on-month.

According to a survey conducted by the association, nearly 40 percent of dealers are optimistic about the automobile market in the second half of the year, and nearly 30 percent believe that car sales will remain flat from last year.