Chinese economic figures fail to live up to expectations

China’s factory output slowed more than expected in July while investment and retail sales also disappointed, reinforcing concerns that the world’s second-largest economy was starting to lose some steam as lending costs rose and the property market cooled.

Factory output rose 6.4 per cent in July from a year earlier, the slowest pace since January this year, statistics bureau data showed on Monday.

Analysts polled by Reuters had predicted factory output would grow by 7.2 per cent in July, down from 7.6 per cent in the previous month.

Fixed-asset investment grew by 8.3 per cent in the first seven months of the year, cooling slightly from 8.6 per cent in the first half of the year. Analysts had expected the growth rate would remain steady.

Despite the softer-than-expected reading, China’s manufacturing activity still appeared to be supported by a year-long construction boom. Beijing has poured money into infrastructure projects that have fuelled demand for products from construction equipment to building materials from cement to steel.

Relatively resilient economic growth is no doubt welcome news for President Xi Jinping ahead a major political leadership reshuffle in autumn, with authorities keen to ensure a smooth run-up to the meeting.