China's economy showed signs of an extending slowdown in July, with a slump in industrial output and retail sales following one of its lowest quarterly growth readings on record, according to the Guardian.
Key facts
- Industrial output and retail sales slumped in July, according to the Guardian.
- The slump adds pressure on Beijing to intervene with measures to support activity.
- China posted one of its lowest quarterly growth readings on record in the three months to June.
- China is the world's second largest economy.
China’s economy is showing signs of extending a slowdown, with a slump in both industrial output and retail sales recorded in July, according to the Guardian. The weaker readings add to pressure on Beijing to step in with measures designed to support economic activity.
The July figures follow one of the lowest quarterly growth readings on record in the three months to June, the Guardian reported. That earlier reading had already raised concerns about the health of the world’s second largest economy.
The latest data suggests the economy continued to falter into July, indicating that the softness seen in the second quarter has not eased. Both industrial output, a measure of factory and production activity, and retail sales, a gauge of consumer spending, weakened during the month.
The combination of slowing production and weaker consumer demand points to broad-based pressure across the economy rather than a narrow, sector-specific problem, based on the indicators cited by the Guardian.
The developments have increased expectations that Beijing may act to shore up growth, though the Guardian’s report focuses on the signs of the slowdown rather than specifying any measures the authorities might take.
Why it matters
China is the world's second largest economy, so a prolonged slowdown there can ripple through global trade, commodity demand and financial markets. Weaker industrial output and consumer spending also raise the likelihood of government intervention, which shapes conditions for businesses and investors worldwide.
Frequently asked questions
What economic indicators weakened in China in July?
According to the Guardian, both industrial output and retail sales slumped in July.
How did China's economy perform in the second quarter?
The Guardian reported that China posted one of its lowest quarterly growth readings on record in the three months to June.
What might Beijing do in response?
The Guardian reports the figures add pressure on Beijing to intervene with measures to support activity, but does not specify the particular steps that will be taken.