China slowdown persists as industrial economy posts worst growth since February 2002
- Industrial production – a measure of China’s industrial sectors including manufacturing and mining – grew by just 4.8 per cent in July
- Retail sales, a key metric of consumption in the world’s most populous nation, grew 7.6 per cent in July, down from 9.8 per cent growth in June
China’s industrial production in July grew at its lowest rate since February 2002, with the retail sector also taking a further hit amid a sharpening slowdown sparked by the US-China trade war.
Industrial production – a measure of the output of the industrial sectors in China’s economy, including manufacturing, mining and utilities – grew by 4.8 per cent in July from a year earlier. This was down from 6.3 per cent in June, which had improved from May’s 5.0 per cent growth rate.
The July reading was well below a poll of economists conducted by Bloomberg, which had forecast 6.0 per cent growth.
A general malaise has persisted over the last 13 months, during which the Chinese economy has been beset by US tariffs. Over the same period, the trajectory of most of China’s important economic indicators has been of declining growth.
In addition, retail sales, a key metric of consumption in the world’s most populous nation, grew by 7.6 per cent in July, down from 9.8 per cent growth in June, and well short of economists’ prediction of 8.6 per cent growth.