In china, disappointing data on industrial production and retail sales have provided indications of a slowdown in economic momentum.
In july, industrial production increased, according to the national statistics office. However, the year-on-year increase was 4.8 percent, while analysts had expected a stronger rise of 5.2 percent.
The downturn was even more pronounced in the retail sector. Here, the statistics office reported a year-on-year decline in sales of 1.1 percent for july. Analysts, on the other hand, had expected a slight increase of 0.1 percent, marking the first time this year that retail trade had returned to the growth zone.
According to commerzbank expert hao zhou, the data show "slowing economic momentum" in the world’s second-largest economy. China’s economy has now largely recovered from the consequences of the corona pandemic. The leadership in beijing has therefore scaled back its economic stimulus measures to some extent, because the consequences of high debt are now increasingly taking center stage.
China’s economy has recently recovered from the corona slump because the country has largely brought the pandemic under control. The reduction in the number of people being supported, which the government had introduced because of the corona outbreak, was also clearly noticeable. On the other hand, the trade disputes between the USA and china are having a negative impact.
The expert hao zhou expects that the chinese authorities will implement further economic measures only cautiously in the coming months. As a result, "china’s growth momentum is expected to slow markedly from the third quarter onward".