China's industrial production disappoints in July, retail sales improve According to Investing.com
Investing.com– China's industrial production grew more slowly than expected in July as exports, particularly of electric vehicles, were hit by higher trade prices, while retail sales improved on spending.
grew by 5.1% year-on-year in July, government data showed on Thursday. The reading was a weaker-than-expected 5.2% and down from the 5.3% growth seen in the previous month.
The softer reading came after the Chinese weakened in July, as the EV sector was hit by rising import tariffs by the European Union.
Increased protectionist policies and sluggish demand in China's major export markets are expected to weigh on local output, while weak local demand has also weighed on recent months.
But Chinese consumer spending appeared to be picking up steam, especially after the country's interest rate cut until July. Beijing has also flagged plans to boost consumer spending.
grew 2.7% in July, compared to expectations for a 2.6% increase and accelerating from the 2% seen in the previous month.
Capital expenditure, however, disappointed, as it grew by 3.6% in July compared to expectations of 3.9%.
China unexpectedly increased to 4.2% from 4.1%.
Thursday's data showed that China's economy remains very weak, with private spending seeing moderate growth from recent government measures. Increased overseas pressure on Chinese industries could also bring new headwinds to the economy.
