Growth in Chinese investment and factory output slowed further last month as the government cut back lending to normal levels.
It was boosted last year to counter the effects of the global financial crisis.
The figures, along with weaker retail sales and a sharp drop in import growth, paint a picture of softening domestic demand.
Annual industrial output growth slowed to 13.4 percent in July from 13.7 percent in June.
Investment in fixed assets, such as factories and apartments, also slowed to 24.9 percent from 25.5 percent.
But Ting Lu, an economist at Bank of America Merrill Lynch, said real growth on the month was steady taking into account wholesale inflation, which dropped to 4.8 percent from 6.4 percent in June.
He added: “China’s growth is slowing, but we see no sign of a hard landing.”
However some economist registered concerns about a slowdown in the growth of money supply, which is the lubricant of every economy.
Countering that, Sheng Laiyun, a spokesman for the National Bureau of Statistics, which released the data, described the slowdown as moderate and a welcome step to a more sustainable model of growth relying less on energy-intensive heavy industry.
But there are also question marks over exports. China is concerned about the fragility of demand from Europe and the US.