China's Factory Output Growth Slows as Industrial Production Rises 5.1% in July

China's industrial output increased by 5.1% year-on-year in July, according to the National Bureau of Statistics (NBS), though this growth was slower than the 5.3% recorded in June. Retail sales also saw a rise, growing by 2.7% in July, up from 2.0% in June. Fixed asset investment expanded by 3.6% in the first seven months of 2024 compared to the same period a year earlier, falling short of the forecasted 3.9%.

The slower growth in industrial output and fixed asset investment, combined with other recent poor economic indicators, has led to calls for increased policy support to bolster the country's economic recovery. The NBS's data also indicated that while consumer spending is improving, the overall economic performance remains below expectations. The Chinese government continues to target an economic growth rate of around 5% for 2024.