Unexpectedly weak economic data from China: Production in the industrial sector has risen so slowly in July, also because of the consequences of the trade dispute with the United States as it has been since 2002, as announced today. Retail sales and investment were also weak in July.
Industrial production rose in July compared to the previous year by 4.8 percent, the government said today in Beijing. This was the lowest growth rate since the beginning of the last decade for the world’s second largest economy. In addition, the increase was well below the expectations of the experts interviewed by Bloomberg.
Investments also disappointed
Also weaker than forecast, retail sales grew. It rose in July compared to the previous year by 7.6 percent. In June, the increase was still just under ten percent. Economists polled by Bloomberg had expected a slowdown in growth, but at least a 8.6 percent increase on the slip.
Investments in property, plant and equipment also disappointed – though not as strongly as industrial production and retail. They increased by the end of July by 5.7 percent. Here, the economists had expected an increase on the previous level of 5.8 percent. The Chinese economy only grew by 6.2 percent in the second quarter. The growth rate fell to its lowest level in almost three decades.
