China's economy is exhibiting signs of an extended slowdown, with industrial output and retail sales experiencing a slump in July. This follows one of the country's lowest quarterly growth rates on record in the three months leading up to June.
Official figures from the National Bureau of Statistics (NBS) on Monday revealed that factory output grew by 4.5% year-on-year last month, a decrease from 5.3% in June and below a Reuters poll forecast of 4.8%. Separate data indicated that retail sales rose by 0.6%, a deceleration from a 1% increase in June, despite summer holiday tourism spending.
The NBS attributed some disruption to market supply and demand to extreme weather conditions, including high temperatures and heavy rainfall. China's premier, Li Qiang, suggested on Monday that efforts to bolster overseas demand for goods could be used to compensate for weak domestic demand, noting that "the problem of insufficient domestic demand remains prominent."