Industrial output, retail sales growth miss forecasts
The nation's July industrial output and retail sales growth slowed and undershot forecasts, adding to a raft of recent weak data. Less than an hour before the data release, the central bank unexpectedly cut key policy rates for the second time in three months, underlining the rapid loss of the post-Covid economic rebound. Industrial output grew 3.7 percent from a year earlier, slowing from the 4.4 percent pace seen in June, data released by the National Bureau of Statistics (NBS) showed on Tuesday. It was below expectations for a 4.4 percent increase in a poll of analysts conducted by the Reuters news agency. Retail sales, a gauge of consumption, rose 2.5 percent, down from a 3.1 percent increase in June and missed analysts' forecasts of 4.5 percent growth despite the summer travel season. It was the slowest growth since December 2022. Policymakers last month released a batch of stimulus measures, from boosting auto and home appliances consumption, relaxing some property restrictions to pledging support to the private sector. However, the persistent drag in the property sector, mounting local government debt pressure, high youth jobless rate and cooling foreign demand continue to be major impediments. The latest figures suggest the broader economy remained underpowered last month and come on top of a batch of gloomy data over the past week, including disappointing trade and consumer price numbers as well as record-low credit growth that underline the need for policymakers to provide more support measures. Investment in the property sector also tumbled 8.5 percent year-on-year in January-July, after shrinking 7.9 percent in January-June. Demand for the property sector, once a pillar of economic growth, has remained weak in recent weeks. The Politburo, a top decision-making body, said last month it is necessary to adapt to significant changes in market supply and demand and optimise property policies in a timely manner. (Reuters)