China industrial output growth slows as retail sales underperform
China's industrial output rose 4.5% year on year in July, down from 5.3% in June and below the 4.8% Reuters poll forecast, while retail sales grew just 0.6% versus an expected 1.5%. The readings reflect weak domestic demand, disruptions from three typhoons that affected eastern and southern manufacturing hubs, and a fading boost from state trade-in subsidies, whose average daily sales fell to 6.3 billion yuan from 9 billion yuan in June. Fixed-asset investment contracted 6.7% in the first seven months, and auto sales fell for a tenth straight month, even as robust exports and a monthly trade surplus above $100 billion continued to support factories.
July readings show slowing industrial and retail growth and weak domestic demand
Context
Second-quarter growth cooled to a three-and-a-half-year low. July indicators then showed…
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