Thursday’s Asian session was all about China, with several key economic data points releasing from the world’s second most powerful economy. After growing at a record pace during the first three months of the year, China’s GDP fell to less than half during the second quarter of the year, coming in at +7.9% YoY.

In Q1 2021, China’s GDP had soared to a record high 18.3% YoY as it rebounded sharply from the same time last year when the coronavirus outbreak first started. The Q2 reading missed economists’ expectations, which were for a reading of 8.1%, with the decline in economic growth coming on the back of fresh outbreaks of COVID-19 cases, slowdown in manufacturing activity and soaring raw material costs pressuring businesses.

Meanwhile, China’s industrial output expanded by 8.3% YoY during the month of June, dipping from May’s reading of 8.8%. On a positive note, however, the reading did come in better than economists’ forecast for a 7.8% increase instead.

Domestic consumption also experienced a slight dip in the month of June, with retail sales dropping to 12.1% YoY from the previous month’s jump of 12.4%. The figure did come in better than economists’ expectations for a 11% rise.

Fixed asset investment also posted a growth, rising by 12.6% YoY during the first half of 2021, coming in better than economists’ forecast for a 12.1% jump. Although, the pace of investment slowed down considerably in June, as the first five months of the year had seen fixed asset investment rise by 15.4%.