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China’s industrial output and retail sales weaken in July
July factory output rose 4.5% year over year, easing from 5.3% in June, while retail sales growth slowed to 0.6%.
China’s economy showed signs of further slowdown in July, with weaker factory output and softer consumer spending in official data, adding to pressure on Beijing to provide additional support for activity, The Guardian Business reported. Factory output grew 4.5% from a year earlier in July, slower than the 5.3% increase in June and below a Reuters poll forecast of 4.8%, according to figures released by the National Bureau of Statistics. Retail sales rose 0.6% year over year, down from a 1.0% increase in June, and below forecasts expecting 1.5% growth, the report said. The NBS attributed part of the weakness to extreme weather, including high temperatures and heavy rainfall, which disrupted supply and demand. The data are expected to increase pressure on policymakers to move forward with plans for tax and spending measures to support growth, the outlet added.
China’s premier Li Qiang said the shortfall in domestic demand remains prominent and that some industries are facing increasing difficulties, according to Xinhua as cited in the report. Analysts also pointed to possible temporary factors, with Capital Economics noting that manufacturing activity related to AI capital expenditure has continued to build, while wider weakness may reflect temporary disruptions from recent typhoons.