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Investing.com-- China’s industrial production in July fell short of expectations as overseas demand waned following earlier front-loading due to U.S. tariffs, according to official data released Friday.
The country’s retail sales figures also came in below expectations in July amid weakness in consumer spending as government’s initiatives failed to boost local consumption.
Industrial production grew 5.7% year-on-year in July, government data showed on Friday. The reading was below expectations of 6% and fell from the 6.8% rise seen in the prior month.
The data points to fading effects of inventory pre-stocking before tariffs and signs of broader cooling in global demand.
The slowdown is consistent with other indicators suggesting weakening industrial activity. Previously released July’s official manufacturing PMI recorded its fourth straight month in contraction territory, as new export orders and domestic demand both continue to falter.
Retail sales also disappointed, rising 3.7% in July versus expectations of 4.6% and a previous 4.8%.
Other data released on Monday also presented a soft picture for the Chinese economy. Fixed asset investment, which represents capital spending by local businesses, rose 1.6% in July, sharply missing expectations of 2.7% growth.
The unemployment rate ticked higher to 5.2%, surpassing both the 5.1% estimate and June’s 5.0%.
China continues to face relatively steep U.S. trade tariffs, though both sides agreed earlier this month to extend their trade truce by 90 days, avoiding an escalation that would have pushed duties into triple digits.
Policymakers may now face mounting pressure to bolster domestic demand, possibly through fiscal support or consumption incentives.