China’s NBS: Economy continued to recover steadily in July

Cornelia Mascio
Agosto 16, 2020

China's retail sales insinuated July, rushing expectations for a modest increase, as customers on the planet's second-largest economy stopped working to get rid of wariness about the coronavirus, while the factory sector's recovery had a hard time to get speed.

China continued to recover from fallout of the Covid-19 pandemic in July as major economic indicators for investment and consumption improved from the previous month, but its labor market remained weak, official data showed Friday.

Industrial output grew 4.8% in July from a year earlier, in line with June's growth but less than forecasts for a 5.1% rise.

China's July property investment grew at the quickest clip since April past year, underpinned by solid construction activity and easier lending as the economy gradually recovers from the coronavirus crisis.

Funds raised by China's property developers returned to growth of 0.8 per cent in the first seven months, better than a 1.9 per cent drop in the first half of 2020.

The decline in retail sales was broad based with garments, cosmetics, home appliances and furniture all worsening from June.

"Given we are likely to see a resurgence of COVID in the autumn and winter, it is not recommended that monetary policy be tightened too prematurely and fiscal policy stay insufficient".

Helping carry the recovery, however, was investment, which was driven by the fast expansion in the property sector, with analysts expecting infrastructure spending to accelerate in coming months on the back of government support.

Property sales by floor area rose 9.5 per cent in July from a year earlier, versus a 2.1 per cent growth in June.

Following the release of the July activity numbers, China's National Bureau of Statistics (NBS) released a statement, via Reuters, expressing their take on the economy. -China relationship ahead of the US presidential elections in November, which analysts say has prompted Beijing to focus on domestically driven growth.

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