China: Retail Sales Above Estimates, Industrial Production Slows Down
Among the positive factors, Chinese authorities cite the growth of domestic tourism
China’s retail sales, a key indicator of household consumption, rose more than expected in July. After an alarming slowdown in June, when year-over-year retail sales rose by “only” 2%, this fundamental indicator started to rise again in July, reaching 2.7%. According to information released Thursday, August 15, by the National Bureau of Statistics of China, the positive figures were slightly better than Chinese and international analysts had expected, estimating growth of +2.6 percent.
It is emphasized that the recovery has been “intermittent,” with some sectors benefiting from it, such as the service sector, helped by an increase in domestic tourism during the summer months. Other key industries are still struggling. The situation in the real estate sector, which has long accounted for more than 25% of China’s GDP, continues to cause concern.
China’s industrial production slowed more than expected in July and, despite rising 5.1% year-on-year, posted its slowest growth pace since March. China’s industrial production rose 5.3 percent in the previous month, and analysts had expected a moderate slowdown to 5.2 percent.
Another factor that raised new concerns in Beijing was urban unemployment, which rose to 5.2% from 5% recorded in June.
