Firm China economic surge demonstrates signs of fading in July

Firm China economic surge demonstrates signs of fading in July

In July, China's firm economic surge demonstrated clear signs of fading because lending costs grew and the gravity-defying property market descended, although activity levels mostly remained sturdy, propped up by a year-long construction boom.

The previous month retail sales, industrial output, investment and trade all inched up less than expected after the world's second-largest economy demonstrated a shockingly sturdy surge in the first half, thus contributing to a global revival.

However, economists don’t actually expect any hard landing, with the authorities keen to ensure stability ahead of an upcoming Communist Party leadership reshuffle in the autumn.

In July, factory output leapt 6.4% from 2016, which is the slowest tempo since January.

Financial experts surveyed by Reuters had forecast output would ascend 7.2%, sliding from a better-than-expected 7.6% in June.


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