China's auto sales growth slows

HITTING THE BRAKES: Auto sales growth in China, the world's biggest market, slowed in July. Sales rose 17.2 percent to 1.05 million units, down from 19.4 percent growth in June. The state report said August sales are likely to weaken further.

WHY IT MATTERS: Automakers are looking to China to drive sales amid weak global demand. But monthly sales growth has fallen steadily from March's 63 percent rise.

THE BACKDROP: Beijing renewed subsidies on a smaller scale in June, promising 3,000 yuan ($443) per vehicle for fuel-efficient cars and small trucks. In China, automakers face rising costs and labor tensions, highlighted by recent strikes at parts suppliers affiliated with Honda and Toyota that disrupted production.