China's July shopping and housing readings both slowed
July retail sales rose 0.6 per cent year on year, below expectations, while new home prices across China's four first-tier cities went flat from June, ending a four-month rebound.
Economics & Markets··Evening
July retail sales came in at 0.6 per cent
China's retail sales rose 0.6 per cent year on year in July, according to National Bureau of Statistics data published on Monday. Economists had expected 1.5 per cent, and June's reading was 1 per cent. Bureau spokesman Fu Linghui said international geopolitical conflicts persisted in July and the global energy market was marked by significant instability. Economist Zhiwei Zhang said the weak data indicate the economy faces downside risks that require a more effective policy response.[1]
First-tier home prices turned flat
New home prices across China's four first-tier cities were flat on average in July from June, ending a four-month rebound, according to National Bureau of Statistics data released on Monday. Prices in Beijing fell 0.3 per cent, while Shanghai and Shenzhen rose 0.2 per cent and Guangzhou gained 0.1 per cent. Among the 70 large and medium-sized cities the bureau tracks, 23 recorded increases or flat readings in July, two more than in June. Second-tier city prices fell 0.1 per cent month on month. First-tier prices were 1.1 per cent lower than a year earlier, a decline that narrowed by 0.2 percentage points from June. Yan Yuejin of the E-house China Research and Development Institute said the latest data show marginally deeper month-on-month declines for second-tier cities, pointing to more pressing needs to stabilise those housing markets.[2]
Industrial output also lagged forecasts
Industrial production grew 4.5 per cent year on year in July; expectations were 5 per cent and the pace came in below June's 5.3 per cent. Fixed-asset investment fell 6.7 per cent year on year in the January-July period. Exports and AI-related technology products stayed strong while domestic consumption remained weak. China is targeting growth of 4.5 per cent to 5 per cent for 2026, its lowest official goal in decades.[1]
