MNI BRIEF: China July Output, Investment Slows On Weak Demand
China's economy slowed further in July with weak demand taming production and investment more than expected, though consumption rebounded moderately on summer vacation, data released by the National Bureau of Statistics on Thursday showed.
Retail sales grew 2.7% y/y in July, accelerating from June's 2.0% gain and in line with the 2.7% forecast. Retail sales grew 3.5% y/y in Jan-Jul, lower than the 3.7% in H1. (See MNI EM: Beijing Shifts Focus To Consumption To Boost H2 GDP)
Industrial production rose 5.1% y/y in July, decelerating for the third month from June's 5.3% growth but underperforming the expected 5.4%. Industrial output grew 5.9% in Jan-Jul, compared to the 6.0% in H1.
Fixed-asset investment registered a 3.6% y/y increase in the first seven months to hit the lowest this year, moderating from the 3.9% growth over H1 and missing the 3.9% consensus. Property investment fell by 10.2%, further expanding from the previous 10.1% decline. Infrastructure investment and manufacturing investment grew by 4.9% and 9.3%, compared with the previous 5.4% and 9.5%.