China's Economic Performance Falls Short in July

(MENAFN) China's economic performance in July showed signs of weakness, with industrial production, retail sales, and fixed investments all falling short of market projections, as revealed by data from the National Bureau of Statistics on Friday.

Industrial output rose by 5.7% year-on-year in July, underperforming market expectations of a 6% increase and showing a slowdown from June's 6.8% growth.

Retail sales also grew at a slower pace, up 3.7% compared to the same period last year. This figure fell short of the 4.6% growth predicted by analysts and was a decline from June's 4.8% increase.

In the first seven months of the year, fixed-asset investment rose by just 1.6% year-on-year, significantly missing the forecasted 2.7% rise, underscoring a lack of momentum in key economic sectors.

The National Bureau of Statistics attributed the disappointing performance to severe weather events and persistent challenges from the volatile and unpredictable external environment. Last month, intense rainfall, soaring temperatures, and widespread flooding in multiple regions of China disrupted business operations and forced the suspension of several construction projects.

In addition to the weather-related setbacks, the ongoing trade tension and tariff uncertainties continued to impact economic performance. Despite government measures aimed at boosting domestic demand, the effectiveness of these policies appeared to be waning. The government's push to stimulate consumption through trade-in incentive programs for automobiles, electronics, and appliances has had mixed results.

According to Chinese Ministry of Commerce data, these programs generated 1.6 trillion yuan ($223 billion) in sales by July 16, but the broader economic environment remains challenging.

The urban unemployment rate also saw an uptick, rising to 5.2% in July, up from 5% in June, signaling further strain on the labor market.

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