Foreign direct investment in China accelerated in July, rising 29.2 percent over a year earlier, the Commerce Ministry reported Tuesday, in a positive sign for the slowing economy.

July investment totaled $6.9 billion and the growth rate was up from the 20.7 percent for the first seven months of the year, said ministry spokesman Yao Jian.

"Foreign direct investment showed a continued recovery. It was a pretty good performance," Yao told reporters.

FDI includes spending on factories, real estate and other assets but excludes investment in stocks and other financial instruments. Foreign investment in China slowed as the global crisis hit but has rebounded as companies try to cash in on its revival.

China's economic growth slowed to 10.3 percent in the three months ended June 30, down from 11.9 percent the previous quarter as the government wound down its stimulus and clamped down on a boom in bank lending.

July factory output, retail sales and investment also weakened from the previous month.