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China’s economic activity expands at slower pace in July - MarketWatch

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BEIJING — Measures of China’s economic activity grew at a slower rate than expected in July, signaling that heavy floods and the COVID-19 Delta variant outbreaks took a bigger toll on the world’s second-largest economy.

Industrial production rose 6.4% from a year earlier in July, slowing sharply from the 8.3% pace in June, the National Bureau of Statistics said Monday. The result was also much lower than the 7.8% growth expected by economists polled by The Wall Street Journal.

China’s fixed asset investment increased 10.3% in the January-July period, compared with a 12.6% increase recorded for the first half of the year. Economists had anticipated FAI to have grown 11.2% in the first seven months.

Retail sales, a key gauge for China’s domestic consumption, rose 8.5% in July from a year earlier, lower than the 12.1% pace reported in June and the 11.4% growth expected by polled economists.

China’s urban surveyed unemployment rate edged up to 5.1% in July, compared with 5.0% in June, according to the statistics bureau.

The bureau said the coronavirus resurgence and natural disasters have affected some local economies and China’s economic recovery was still “unstable and unbalanced.”

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