Chinese economy stagnates after worst 5-quarter performance

Posted on August 16, 2024   |  

China's economy struggled to recover in July, following its worst performance in five quarters, with consumer spending still behind industrial activity and investment.

Industrial output grew by 5.1% compared to last year, slightly below forecasts and down from June's 5.3% increase.

The urban unemployment rate rose to 5.2% in July, marking its first increase since February.

Retail sales increased by 2.7%, slightly better than expected, thanks to the summer holiday season and a favorable comparison to last year.

The yuan weakened further despite the central bank setting a stronger daily reference rate for the currency.

Property investment fell by 10.2% in the first seven months of the year, slowing overall fixed-asset investment growth to 3.6%.

Investment by state-owned enterprises slowed to 6.3%, while private sector investment remained stagnant, highlighting ongoing economic challenges.