Factory output and retail sales in China edged up in July but were weaker than analysts' expectations, official data showed Monday, as a Covid-19 resurgence and property market jitters cast a pall over hopes for a stronger economic recovery.

The world's second-biggest economy saw a bounce in business activity as some coronavirus restrictions eased in June, but the boost is fading and Beijing remains welded to a zero-Covid policy of snap lockdowns and long quarantines, which has battered sentiment.

But for July, China's industrial production rose 3.8 percent on-year, down from a 3.9 percent jump in June, the National Bureau of Statistics (NBS) said Monday.

Retail sales grew at a slower-than-expected 2.7 percent from a year ago, down from 3.1 percent in June, while the urban unemployment rate fell to 5.4 percent, the NBS said.

"The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid," the NBS warned in a statement.

Retail sales likely stalled "due to some renewed virus disruptions and the blow to consumer sentiment from the problems in the housing market," Julian Evans-Pritchard, senior China economist at Capital Economics said in a recent report.

"July's economic data is very alarming," Raymond Yeung, Greater China economist at Australia & New Zealand Banking Group Ltd, told Bloomberg TV.

"The Covid Zero policy continues to hit the service sector and dampen household consumption."

China's property sector has been teetering, with frustrated homebuyers across dozens of cities taking part in mortgage boycotts as cash-strapped developers struggle to complete projects.

China's economic growth was just 0.4 percent on-year in the second quarter -- its slowest rate since the initial Covid outbreak.

Credit growth in the country edged down in July as well, with analysts at Nomura saying in a report that it did not bode well for the second half of the year.

"The combination of zero-Covid strategy and the deteriorating property sector continues to drag down the economy, even as export growth remains elevated and the automobile sector gets a boost from the purchase tax cut," Nomura analysts said.

bys/oho/cwl

ANZ - AUSTRALIA & NEW ZEALAND BANKING GROUP

NOMURA HOLDINGS

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

'Hopeless': Chinese homebuyers run out of patience with developers
Beijing (AFP) Aug 12, 2022
Newly married and with his first child on the way, auto worker Wang wanted to move into the apartment he bought in Wuhan three years ago but those hopes were dashed by China's ballooning property crisis. Saddled with $300,000 in debt and with his unit nowhere near completion, the 34-year-old decided he had had enough and stopped making mortgage payments. He is among numerous homebuyers across dozens of cities in China who have boycotted payments over fears that their properties will not be compl ... read more