China’s economy lost momentum in July as industrial output, retail sales and housing prices all weakened, according to official data released Friday.
Uncertainty over U.S. tariffs continues to weigh on the world’s second-largest economy, even after President Donald Trump extended a 90-day pause on planned duty hikes starting Monday — following an earlier three-month suspension in May.
Exports rose 7.2% year-on-year in July and imports grew at the fastest pace in a year, driven partly by businesses rushing to ship goods during the tariff truce. However, the gains came from a low base, and manufacturers have scaled back investment, hiring and output while diverting shipments to Southeast Asia, Africa and other markets to offset U.S. losses.
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Industrial output growth slowed to 5.7% in July from 6.8% in June, while fixed-asset investment rose just 1.6% in January-July. Property investment plunged 12% in the first seven months, with residential investment down nearly 11%. New home prices in major cities dropped 1.1%, extending a prolonged slump that began with the COVID-19 pandemic and led to widespread developer defaults.
The housing crisis has curbed consumer spending, with retail sales growth slowing to 3.7% in July from 4.8% in June. Unemployment edged up to 5.2%, while wholesale prices fell 3.6% year-on-year despite a 0.4% monthly rise in consumer prices.
Source: Agency