Chinese Industrial Production and Retail Sales in July

Chinese industrial production grew slightly less than expected in July, impacted by increased trade tariffs on exports, especially in the electric vehicle (EV) sector, while retail sales showed signs of improvement in consumer spending.

Key Highlights:

• Industrial Production: Grew 5.1% year-on-year (YoY) in July, weaker than the expected 5.2% and down from 5.3% in the prior month.
• Exports Impact: July saw a slowdown as the EV sector faced increased tariffs from the European Union, contributing to weaker exports.
• Consumer Spending: Showed signs of recovery with retail sales increasing 2.7% YoY in July, surpassing expectations of 2.6% and an increase from 2% in the previous month.
• Capital Spending: Fixed asset investment grew 3.6% YoY, underperforming against expectations of 3.9%.
• Unemployment Rate: Rose unexpectedly to 4.2%, up from 4.1%.

Overall, the data reflect a frail Chinese economy, with limited improvements in private spending despite government attempts to stimulate the market.