China's Premier Li Qiang addresses economic slowdown as industrial output and retail sales slump in July.

China's Premier Li Qiang noted that insufficient domestic demand remains a prominent problem as the country's industrial output and retail sales slowed in July. Official figures from the National Bureau of Statistics showed factory output grew by 4.5%, missing forecasts, while retail sales rose by only 0.6%. These figures follow one of the country's weakest quarterly growth rates on record. The National Bureau of Statistics attributed the slump to extreme weather, including high temperatures and heavy rainfall, which disrupted market supply and demand. To counter the domestic weakness, Li Qiang suggested that the country should actively stabilize external demand and expand international economic and trade cooperation. Analysts expect a modest uptick in growth later this year, supported by fiscal loosening and continued manufacturing boosts from AI capital expenditure.

Sources

• bloomberg.com
  Xi’s No. 2 Urges More Support for Economy After Big Growth Slump
• WSJ
  China’s Economy Weakens on Several Fronts as Property Bust Worsens
• Axios
  The global stakes of China's slowdown
• Reuters
  China's premier calls for stabilising external demand as growth sputters
• The Guardian
  China’s economy showing signs that slowdown may be extending