Posted on 14 Aug 2017
China's factory output slowed more than expected in July while investment and retail sales also disappointed, reinforcing views that the world's second-largest economy is starting to lose some steam as lending costs rise and the property market cools.
Factory output rose 6.4 percent 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 7.2 percent in July, down from 7.6 percent in the previous month.
Fixed-asset investment grew 8.3 percent in the first seven months of the year, cooling slightly from 8.6 percent 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 fueled 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.
Any sharp drop in industrial activity, which appears to be a low-risk at this stage, would be a concern for policymakers as it risks rippling across the broader economy.
