China’s economic data shows slower-than-expected growth in July. China reported retail sales growth slowed sharply.
Retail sales jumped by 8.5% in July compared to the previous year, while analysts had expected 11.5%. Auto-related sales declined in July, down 1.8% year-on-year.
Industrial production rose by 6.4%, below the forecasts of a 7.8% year-on-year growth in July.
China’s fixed-asset investment rose by 10.3%, for the first seven months of the year, while analysts had expected 11.3% year-on-year growth for the January to July period.
The National Bureau of Statistics said, “The impact of multiple factors including the growing external uncertainties and the domestic COVID-19 epidemic and flooding situation,” according to a release. The bureau also noted, “The economic recovery is still unstable and uneven.”
The unemployment rate stays 5.1% last month. The rate remained a much higher 16.2% for those aged 16 to 24 years old.
The economists have cut their China GDP projection is response to the latest wave of travel restrictions and residential community lockdowns due to the spread of Delta variant in the last two months within the country.
Goldman Sachs awaits 8.3% growth this year, down compared to the previous forecast of 8.6%, according to an Aug. 8 report.
Nomura expects GDP to reach 8.2% for the year, fell from 8.9%, according to an Aug. 3 note.
Meanwhile, the number of new Covid cases is declined compared with other countries. China’s “zero tolerance” approach helped control Covid-19.