China’s economic activity slowed more than expected in July, with fresh virus outbreaks adding new risks to a recovery already hit by floods and faltering global demand.
All the main data missed forecasts: Retail sales expanded 8.5% in July from a year earlier, lower than the 10.9% predicted by economists; industrial output increased 6.4% versus the median estimate of 7.9%; fixed-asset investment grew 10.3% in the first seven months of the year, compared with a forecast of 11.3%; and the unemployment rate rose to 5.1%.
China’s slowdown adds to signs that the global recovery is faltering. U.S. consumer confidence fell in early August to the lowest level in nearly a decade as Americans grew more concerned about the economy’s prospects, inflation and the recent surge in coronavirus cases. Real-time data already shows that Asia’s economies are taking a hit as consumers curb spending and supply chains are disrupted.