Factory output in China sees slower growth
Factory output and retail sales in China posted slower growth in July. According to data from the National Bureau of Statistics, industrial output was up 3.8 percent in July year on year, down slightly from a 3.9 percent increase in June. In the first seven months of the year, output rose 3.5 percent from a year ago. Retail sales climbed 2.7 percent in July from the same period last year, compared with a 3.1 percent expansion in June. Urban unemployment eased to 5.4 percent in July from 5.5 percent the month before. Official data also showed new home prices fell 0.9 percent from a year ago. Prices in four first-tier cities – Beijing, Shanghai, Shenzhen and Guangzhou – edged up 0.3 percent month on month; prices in 31 second-tier cities stayed flat; and 35 third-tier cities saw a decline of 0.3 percent. "The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid," the National Bureau of Statistics said in a statement. Meanwhile, the People's Bank of China cut its interest rate on a one-year loan to 2.75 percent from 2.85 percent and injected an extra 400 billion yuan in lending markets, as part of efforts to shore up economic growth. (Agencies)