China's Economic Struggles: A Slowdown Amidst Global Headwinds

In a noteworthy slump, China's factory output growth in July fell to an eight-month low, while retail sales cooled significantly, increasing the urgency for policymakers to inject more stimulus to boost domestic demand amidst external pressures.

According to the National Bureau of Statistics, industrial output witnessed a year-on-year growth of 5.7% in July, marking the lowest reading since November 2024, while retail sales expanded by just 3.7%, both missing market forecasts. Analysts suggest that fading policy support, coupled with trade tensions and property sector weaknesses, continue to strain the economy.

Despite a temporary trade truce with the United States, challenges persist, reflected in the contraction of new yuan loans and continued sluggishness in property prices. China's GDP growth is projected to cool further, highlighting ongoing economic pressures and uncertainties faced by Beijing.

(With inputs from agencies.)