Signs of Slowing Industrial Momentum in China Cool Market Optimism

Signs of Slowing Industrial Momentum in China Cool Market Optimism

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China’s economic recovery after the COVID-19 epidemic slowed down in July. Industrial production rose 4.8% YoY according to the data from National Bureau of Statistics released on Friday. The figure was below consensus estimate of 5.1%.

On a monthly basis, industrial production increased 0.98%, the state-owned Xinhua news agency said. In the first seven months of this year, the country’s industrial production fell by 0.4% on an annualised basis. At the same time, manufacturing industry felt much better where the output rose 6% YoY.

Retail sales fell 1.1% year-on-year, better than the 1.8% drop recorded in June, but still below the forecasted 0.1% growth. Sales also fell for the seventh straight month, driven by weak consumer demand due to COVID-19 and reduced spending on catering duet to social distancing rules.

In the first seven months of this year, retail sales fell 9.9% year over year. In monthly terms, the reading printed positive figure (0.85%). Xinhua notes that growth has continued for the sixth month in a row since a fall of 10.91% MoM was recorded in January this year.

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