Chinese retail sales drop in July, factory output seen stable
July had seen China’s retail sales declining from a year ago. Meanwhile, the country’s industrial output placed below expectations amid signs of fragile recovery in the world’s second-largest economy.
China’s industrial output recorded a 4.8% jump in July from a year earlier, data from the National Bureau of Statistics showed on Friday. Though it made an increase, it still placed lower than the 5.1% forecast rendered by analysts.
Recovery in China had been gaining momentum after the coronavirus outbreak ravaged huge portions of the economy. The pickup could be attributed to upbeat demand, government stimulus, and strong exports. These factors were also believed to have reduced the need for more monetary stimulus.
In the second quarter, China had emerged from a sharp slump. However, subdued domestic consumption restrained the country from recovering.