China Economic Slowdown Deepens as July Data Miss Forecasts

The China economic slowdown intensified in July as industrial production, retail sales and investment all missed market expectations, increasing pressure on policymakers to support domestic demand.

Industrial output rose 4.5% year on year, below economists’ 5% forecast, while retail sales growth slowed sharply to 0.6%, National Bureau of Statistics data showed.

Fixed-asset investment contracted 6.7% during the first seven months of the year, worsening from a 5.7% decline in the first half. Urban unemployment also increased to 5.2% from 5%.

Property remained a major drag, with real estate investment falling 19.2% while declines in new-home prices accelerated.

Weak consumer demand, fiscal restraint and extreme weather weighed on activity.

The disappointing figures increased expectations that policymakers may introduce further support after senior leaders pledged pragmatic measures at a July meeting but stopped short of announcing additional stimulus.