MNI BRIEF: China Q2 GDP Up 6.3% Y/Y, Slower Than Expected

China's GDP grew by 6.3% y/y in Q2, much lower than the market consensus of 7% though marking the quickest growth within a year when compared to the 4.5% rise in Q1, data released by the National Bureau of Statistics on Monday showed.

GDP grew 0.8% over the previous quarter, slower than Q1's 2.2% q/q increase. While H1 growth was lifted to 5.5% y/y.

Industrial production rose 4.4% y/y in June, beating the 2.5% forecast and accelerating from May's 3.5%. Retail sales increased 3.1% y/y in June to hit the lowest level this year, slightly surpassing expectations for 3.0% but decelerating significantly from May's 12.7% on a higher comparison base same period last year.

Fixed-asset investment in H1 registered a 3.8% y/y increase, slower than the 4.0% growth in Jan-May period but outperforming the 3.5% consensus. Property investment fell further by 7.9% y/y in H1 following the prior 7.2% decrease. Infrastructure investment and manufacturing investment grew by 7.2% and 6.0%, respectively, compared to the previous 7.5% and 6.0%.