China’s growth stumbles in July as retail sales, industrial output miss forecasts

The Chinese economy lost momentum in July, with growth in all fields, with the continued weak demand for mortar and Beijing intensified efforts to reduce excessive ability.

Retail sales increased last month by 3.7 % from the previous year, and the data of the National Bureau of Statistics showed on Friday, and analysts were severely lost from 4.6 % growth in a Reuters poll and slowed 4.8 % growth in June.

Industrial product increased by 5.7 % from last year, that is, its weakest level since November last year, according to LSEG data, and the weakest analysts’ expectations for a 5.9 % increase.

The expansion of fixed assets in July 1.6 % for mines, which worries economists’ expectations for 2.7 % growth and slows from 2.8 % in the first six months. Within this sector, the contraction in real estate investment worsened, and decreased by 12 % in the first seven months.

Separately, the survey -based urban unemployment rate in July reached 5.2 %, increasing to 5 % in May and June. However, the unemployment rate for those between the ages of 16 and 24, with the exception of university students remained above 14 % for a year.

Tianges Show, senior economists in the Economic Intelligence Unit, said he was expected to slow down, because the main contributors to the superior performance in the first half of the year, such as government motivation and pre -emptive trade, fades.

Chinese economy 5.3 % expansion in the first Half a year, on the right track to face the 5 % Beijing goal. However, economists have warned that the risks of the entire general growth remain their goal, and called for supporting a new policy in the second half of the year.

Beijing and Washington announced on Monday that they would extend the customs tariff for 90 days until mid -November, to avoid sharp tariffs and allow more time for both sides to negotiate a solid deal.

Despite the temporary truce, “basic conflicts-from reaching critical technology and minerals to industrial policy and geopolitical alignment-remain,” Jing Cheyan, co-founder and administrative director of the China Analysis Center at the Asian Association Politics Institute.

Cheyan, who advised the two governments during the ongoing negotiations, said that “great political comparison” is preserved for a possible summit between US President Donald Trump and his Chinese counterpart Xi Jinping in the coming months.