MNI BRIEF: China's July Growth Drivers Slow More Than Expected

China’s consumption and production slowed to their weakest pace this year in July, while investment growth hit a near five-year low, National Bureau of Statistics data showed Friday.

Retail sales rose 3.7% y/y, down from June’s 4.8% and missing the 4.6% forecast. Industrial output grew 5.7% y/y, the lowest reading this year, compared with June’s 6.8% and below the 6.0% forecast.

Fixed-asset investment rose 1.6% y/y in the Jan–July period, down from 2.8% in H1 and marking the slowest since September 2020, versus expectations of 2.8%. Property investment fell 12.0%, the sharpest drop since February 2020, after an 11.2% decline in H1. Infrastructure and manufacturing investment grew 3.2% and 6.2%, down from 4.6% and 7.5% respectively. (See MNI INTERVIEW 2: China Fiscal Stimulus Key To Deflation Fight)