China Economy Slowdown Deepens as Retail Sales Hit 2025 Low

The China economy slowdown continued in July as industrial output, retail sales, and investment growth weakened, pointing to fragile momentum in Q3. Factory and mining production increased 5.7% year-on-year, the slowest since November and below June’s 6.8%. Retail sales rose only 3.7%, the weakest reading in 2025, while fixed-asset investment gained 1.6% in the first seven months as the property slump persisted. The urban jobless rate rose to 5.2%. Extreme weather—heatwaves and floods—further disrupted production. Adding to the China economy slowdown, yuan loans contracted for the first time in two decades, underscoring weak demand. Beijing has avoided broad stimulus, instead pursuing targeted measures and reforms.