Latest news with #factory output
Globe and Mail
12 hours ago
- Business
- Globe and Mail
China's economy lags in July under pressure from tariffs and a weak property market
BANGKOK (AP) — China's economy showed signs of slowing in July as factory output and retail sales slowed and housing prices dropped further, according to data released Friday. Uncertainty over tariffs on exports to the United States is still looming over the world's second-largest economy after President Donald Trump extended a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. As officials worked toward a broader trade agreement, China reported earlier that its exports surged 7.2% in July year-on-year, while its imports grew at the fastest pace in a year, as businesses rushed to take advantage of the truce in Trump's trade war with Beijing. But that also reflected a lower base for comparison, and manufacturers have slowed investments, hiring and production as they watch to see what comes. Chinese manufacturers also have ramped up shipments to Southeast Asia, Africa and other regions to help offset lost business in the U.S. Still, annual growth in industrial output fell to 5.7% in July from 6.8% in June, the National Bureau of Statistics said. Investments in factory equipment and other fixed assets rose a meager 1.6% in January-July, compared with 2.8% growth in the first half of the year. Property investments plunged 12% in the first seven months of the year, with residential housing investment dropping nearly 11%. Prices for newly built housing in major cities fell 1.1%, as a prolonged downturn in the property industry lingered. The meltdown in the housing market hit just as the COVID -19 pandemic began, sapping one of the economy's main drivers of growth and causing dozens of developers to default on their debts. The crisis rippled throughout the economy, destroying jobs for millions of people. The government has sought to ensure that most housing that was paid for gets built, but sales remain weak despite a series of moves meant to entice families into back into the market. Since most Chinese families have their wealth tied up in property, the anemic housing market has been a major factor crimping consumer spending. In July, retail sales rose 3.7%, the slowest rate in seven months and down from a 4.8% increase in June. The unemployment rate rose to 5.2% from 5% as university graduates began looking for work. While consumer prices rose 0.4% in July from the month before, prices at the wholesale level slipped 3.6% from a year earlier in another indicator of relatively weak demand.
The Independent
12 hours ago
- Business
- The Independent
China's economy lags in July under pressure from tariffs and a weak property market
China 's economy showed signs of slowing in July as factory output and retail sales slowed and housing prices dropped further, according to data released Friday. Uncertainty over tariffs on exports to the United States is still looming over the world's second-largest economy after President Donald Trump extended a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. As officials worked toward a broader trade agreement, China reported earlier that its exports surged 7.2% in July year-on-year, while its imports grew at the fastest pace in a year, as businesses rushed to take advantage of the truce in Trump's trade war with Beijing. But that also reflected a lower base for comparison, and manufacturers have slowed investments, hiring and production as they watch to see what comes. Chinese manufacturers also have ramped up shipments to Southeast Asia, Africa and other regions to help offset lost business in the U.S. Still, annual growth in industrial output fell to 5.7% in July from 6.8% in June, the National Bureau of Statistics said. Investments in factory equipment and other fixed assets rose a meager 1.6% in January-July, compared with 2.8% growth in the first half of the year. Property investments plunged 12% in the first seven months of the year, with residential housing investment dropping nearly 11%. Prices for newly built housing in major cities fell 1.1%, as a prolonged downturn in the property industry lingered. The meltdown in the housing market hit just as the COVID -19 pandemic began, sapping one of the economy's main drivers of growth and causing dozens of developers to default on their debts. The crisis rippled throughout the economy, destroying jobs for millions of people. The government has sought to ensure that most housing that was paid for gets built, but sales remain weak despite a series of moves meant to entice families into back into the market. Since most Chinese families have their wealth tied up in property, the anemic housing market has been a major factor crimping consumer spending. In July, retail sales rose 3.7%, the slowest rate in seven months and down from a 4.8% increase in June. The unemployment rate rose to 5.2% from 5% as university graduates began looking for work. While consumer prices rose 0.4% in July from the month before, prices at the wholesale level slipped 3.6% from a year earlier in another indicator of relatively weak demand.
CNA
14 hours ago
- Business
- CNA
China's July factory output, retail sales growth slump in blow to economic momentum
BEIJING: China's factory output growth slumped to an eight month low in July, while retail sales also slowed sharply, reinforcing the challenge confronting policymakers as they strive to shore up an economy in the face of soft demand at home and external risks. The underwhelming data, released by the National Bureau of Statistics (NBS) on Friday (Aug 15), come as Chinese policymakers navigate pressure on multiple fronts ranging from US President Donald Trump's trade policies to insufficient demand and excessive competition in domestic market. Industrial output grew 5.7 per cent year-on-year in July, the lowest reading since November 2024, and compared with a 6.8 per cent rise in June. It missed forecasts for a 5.9 per cent increase in a Reuters poll. A temporary trade truce reached between China and the United States in mid-May, which was extended by another 90-days this week, has prevented US tariff rates on Chinese goods from reaching triple-digit levels. However, Chinese manufacturers' profits continue to take a hit from subdued demand and factory-gate deflation at home. Data released earlier this month by the NBS showed that the producer price index fell 3.6 per cent year-on-year in July, matching the near two-year low recorded in June. Beijing has recently stepped up policy measures and made pledges to prop up domestic consumption and curb excessive price competition, as authorities strive to lift economic growth towards the government's 2025 target of around 5 per cent. Retail sales, a gauge of consumption, expanded 3.7 per cent in July, the slowest reading since December 2024, slowing from a 4.8 per cent rise in the previous month and missing forecasts of a 4.6 per cent gain. Fixed asset investment grew 1.6 per cent in the first seven months of the year from the same period last year, compared with an expected 2.7 per cent rise. It had expanded 2.8 per cent in the first half. The world's second-largest economy has so far avoided a sharp slowdown in part due to policy support and as factories took advantage of the US-China trade truce to front-load shipments, but analysts say weak demand at home and global risks will drag on growth in coming quarters. Economic activity has also been impacted by extreme weather, from record-breaking heat to storms and floods across the country, disrupting factory production and day-to-day business operations. The latest Reuters poll projected China's GDP growth to slow to 4.5 per cent in the third quarter and 4.0 per cent in the fourth, suggesting that Beijing has its work cut out in getting households to spend more at a time of uncertainty over job security and mounting headwinds from Trump's global trade war. China's 2025 GDP growth is forecast to cool to 4.6 per cent - falling short of the official goal - from last year's 5.0 per cent and ease even further to 4.2 per cent in 2026, according to the poll.
Bloomberg
31-07-2025
- Business
- Bloomberg
Japan's Factory Output Rises in Show of Resilience Amid Tariffs
Japan's factory output unexpectedly rose in June, showing resilience even as US tariffs weigh on the nation's exports. Industrial production gained 1.7% from the previous month, the Industry Ministry reported Thursday. Output of transport equipment excluding cars and electronic parts and devices drove the gains. Economists had expected a 0.8% loss. Output increased 4% from a year earlier, topping expectations of a 1.3% gain.
