MNI 5 THINGS: China July FAI, IP, Retail Lower Than Estimates

     BEIJING (MNI) - China's fixed-asset investment, industrial production and

retail sales were lower than expected in July, while property investment ticked

up, according to data released by China's statistics bureau on Tuesday. Here are

five things MNI highlights from the data:

     - Fixed asset investment (FAI) growth from January to July extended its

downward trend faster than estimates, leading to the lowest number recorded

since the data was first compiled in 1992. FAI grew 5.5% in the January to July

period, faster than the 6.0% median in an MNI survey where 18 forecasters

participated. Despite stronger growth of property investment in the same period,

the FAI growth was mainly dragged by service sector investment slowing to 6.0%

year-to-date in July from 6.8% ytd in June.

     - Property investment buoyed overall economic performance, though the

government is not loosening tight curbs on the property market. Property

investment gained 10.2% in the first seven months, compared with the 9.7% gain

in the first six months. It was supported by accelerated investment in all three

subcategories -- residential housing, business buildings, and property units for

business operations.

     - Retail sales growth dropped to 8.8% in July, compared with the 9.0% gain

in June. It was lower than the 9% median estimated in an MNI survey. The slowing

was due to restaurant sales growth falling to 9.4% in July from 10.1% in June,

and goods sales growth decreasing to 8.7% in July from 8.9% in June. From

January to July, the growth slowed overall, to 9.3% from 10.4% in the same

period last year. 

     - Industrial production growth was reported as 6.0% y/y in July, unchanged

from the reading in June but well below analysts' predictions of a 6.4% y/y

growth in an MNI survey. The ytd data, which was 6.6% y/y, was down 0.1

percentage point from last month.

     - The surveyed unemployment rate rose to 5.1% in July, up from the 4.8% in

June, marking the second time it has reached this peak reading since it was

first recorded in January. New added urban employment was 8.8 million in

Jan-July, 250,000 more than the same period last year.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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