China’s Retail Sales, Industrial Output Below Expectations

In a worrying sign about the progress towards economic recovery in China, retail sales registered a worse than expected decline during July

China's Retail Sales, Industrial Output Below Expectations

In a worrying sign about the progress towards economic recovery in China, retail sales registered a worse than expected decline during July even as factory output rose at a slower than forecast pace for the month. Retail sales in China reduced by 1.1% YoY in July, better than the 1.8% fall seen in the previous month, but far worse than economists’ forecast of a 0.1% decline.

Retail sales fell for the seventh consecutive month as a result of the pandemic, with consumers remaining cautious about spending even after China emerges out of lockdown and resumes normal levels of activity. Economists had anticipated a smaller decline in retail sales fueled by pent up domestic demand and supported by fiscal stimulus efforts rolled out by the government.

Meanwhile, according to data released by the NBS, industrial output increased by 4.8% YoY – the same pace of growth seen in June. However, the increase in industrial output was less than economists’ expectations for a 5.1% rise.

Fixed-asset investment in the country declined by 1.6% YoY between January and July – improving after having fallen by 3.1% during H1 2020. Fixed-asset investment in the private sector fell by 5.7% during the period, picking up after a 7.3% reduction seen during the first half of the year.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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