(Bloomberg) -- China’s economy slowed more than expected in July, posting the weakest industrial output growth since 2002 and slumping retail sales as trade tensions persist.
- Industrial output rose 4.8% from a year earlier, versus a median estimate of 6%. Retail sales expanded 7.6%, compared to a projected 8.6% increase. Fixed-asset investment slowed to 5.7% in the first seven months, versus a forecast 5.8%.
- The weak economic performance adds pressure on Chinese leaders to boost stimulus amid the ups and downs in the trade war with the U.S. The U.S. threatened more tariffs on China, only to announce a delay on some of them this week, increasing uncertainty on how the trade war will progress.
- The People’s Bank of China last week called for a “rational” view on current headwinds. This shows the central bank had until now intended to take a targeted approach to shore up output, while holding back from rolling out big monetary stimulus.
- ‘July’s activity data was woeful,’’ said Katrina Ell, an economist with Moody’s Analytics in Sydney. “It is a product of softness on both the demand and supply side. In a weakened and cautious economic environment, easier credit conditions aren’t being exuberantly adopted.’’
- Infrastructure investment growth, a key pillar of the government’s stimulus strategy, slowed to 3.8%
- The surveyed jobless rate rose to 5.3%, matching a two-year high
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Jiyeun Lee, Michael S. Arnold
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