The picture shows cars ready for export at the Haitong Automobile Terminal warehouse in Taicang Port, Suzhou City, Jiangsu Province, China on August 10, 2024.
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BEIJING – China’s retail sales grew more than expected in July, while industrial production fell short of expectations, the National Bureau of Statistics said Thursday.
A Reuters survey showed that retail sales increased by 2.7% year-on-year in July, exceeding expectations of 2.6%.
Industrial production grew 5.1%, lower than the 5.2% forecast by the poll.
Fixed asset investment grew 3.6% in the first seven months of this year, lower than analysts’ forecast of 3.9%. Within fixed asset investment, the drag from real estate worsened, falling 10.2% year-to-date through July, compared with a 10.1% decline in June.
Growth in infrastructure and manufacturing components also slowed this year through July compared with June.
The urban unemployment rate rose slightly to 5.2% in July, compared with 5% in June.
The National Bureau of Statistics stated in the English version of the press release that “the conversion of old and new driving forces will cause pain.” It pointed to the “adverse effects” of the external environment and insufficient domestic demand.
Liu Aihua, spokesperson of the National Bureau of Statistics, said that my country’s real estate industry is still in a period of adjustment. She attributed the increase in urban unemployment in July to the graduation season, while also acknowledging that overall employment is under pressure.
The official unemployment rate for urban residents aged 16 to 24 who were not in school in June was 13.2%. Data for July is expected to be released in the coming days.
Other July data released over the past two weeks showed consumer demand remained subdued.
Driven by rising pork prices, China’s consumer prices rose 0.5% in July compared with the same period last year, exceeding expectations. Excluding food and energy prices, core CPI rose 0.4%, down from 0.6% last month.
July trade data showed that imports increased by 7.2% year-on-year, faster than expected, while exports grew by 7%, lower than expected.
In the second quarter, GDP increased by 4.7% year-on-year, which was disappointing.
However, Beijing has not significantly increased its stimulus program beyond expanding trade-in and equipment upgrade policies.
At the much-anticipated Third Plenary Session of the Central Committee of the Communist Party of China and the Politburo Policy Meeting in July, Chinese authorities confirmed that China will strive to achieve its annual growth target of around 5%. They also emphasized the long-term goal of developing advanced technologies and other “new growth drivers.”
China’s economy faces challenges not only from the external environment but also from structural transformation – “the pain that must be experienced in promoting high-quality development,” said an official from China’s National Development and Reform Commission. This is based on CNBC’s translation of Chinese remarks.
This is a breaking news story. Please check back for updates.
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