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China's economy slows further in July as retail sales barely grow

News | 2026/08/17 07:03

China's economy slows further in July as retail sales barely grow

Retail sales grew 0.6%, investment slumped 6.7%

China's economy lost momentum across the board in July, as consumer spending stalled and urban investment contracted at a faster pace while unemployment ticked higher, adding to pressure on Beijing to step up support in the second half.

Retail sales grew by 0.6% year-on-year, missing the estimated 1.5% jump in a Reuters poll.

China's urban fixed-asset investment, including real estate and infrastructure, contracted by 6.7% in the January to July period.

Industrial output rose by 4.5% in July, undershooting the estimated 4.8% growth.

The urban unemployment rate stood at 5.2% in July, ticking up from 5% in June.

The data, released at 3 p.m. instead of the usual 10 a.m., reinforced concerns about the health of the world's second-largest economy.

Consumption slowdown

China's retail sales growth has slowed sharply over the past year, with nominal growth easing to just 1.3% in the first half of this year.

China's consumer inflation eased to a six-month low of 0.5% in July, while core CPI, excluding volatile food and energy prices, rose 0.9%.

Unemployment worries

The jobs picture may be worse than official figures suggest.

Investment slump

Behind the weak hiring is a slump in investment.

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