After six months of steady improvement, China’s economy showed signs of strain in July, with several headline indicators losing momentum amid a weakening of domestic consumption, headwinds from the US trade war and a prolonged property downturn.
Retail sales, a major gauge of consumption, rose by 3.7 per cent year on year in July, a drop in pace compared with the 4.8 per cent growth rate recorded in June, according to data released by the National Bureau of Statistics (NBS) on Friday.
The figures fell short of the 4.87 per cent growth forecast from a poll of economists by financial data provider Wind.
“Generally speaking, the national economy, with the effects of macro policy unfolding in July, maintained steady development momentum,” said Fu Linghui, spokesman for the bureau.
“However, we should be aware that the external environment remains complex and severe, and certain risks and challenges to economic performance persist.”
Beijing has made increasing domestic consumption a key policy priority this year, as it looks to rebalance the Chinese economy and offset the impact of US tariffs.
