China reports big data miss in July, stops releasing youth unemployment numbers

BEIJING
—
China
reported
July
data
that
broadly
missed
expectations.
The
National
Bureau
of
Statistics
report
also
did
not
include
the
unemployment
figure
for
young
people,
which
has

soared
to
record
highs
in
recent
months.

Retail
sales
rose
by
2.5%
in
July
from
a
year
ago,
below
expectations
for
a
4.5%
increase,
according
to
analysts
polled
by
Reuters.

Industrial
production
rose
by
3.7%
in
July
from
a
year
ago,
below
the
4.4%
increase
analysts
had
expected.

Fixed
asset
investment
rose
by
3.4%
for
the
first
seven
months
of
the
year
from
a
year
ago,
below
the
3.8%
forecast
by
the
Reuters
poll.

The
urban
unemployment
rate
ticked
up
to
5.3%
in
July
from
5.2%
in
June.

Contrary
to
prior
reports,
the
latest
release
did
not
break
down
unemployment
by
age.
The
age
16
to
24
category
has
seen
unemployment
far
above
the
overall
jobless
rate,
reaching
a
record
high
of
21.3%
in
June.

A
spokesperson
for
the
National
Bureau
of
Statistics
said the
bureau
is
suspending
the
youth
unemployment
number
release
due
to
economic
and
social
changes,
and
is
reassessing
its
methodology.

On
a
year-to-date
basis,
real
estate
investment
fell
by
8.5%
from
a
year
ago
as
of
July,
a
greater
decline
than
as
of
June.

Online
retail
sales
of
physical
goods
rose
by
6.6%
in
July
from
a
year
ago,
a
sharp
slowdown
from
double-digit
increases
in
recent
months,
according
to
CNBC
calculations
of
official
data.

Within
retail
sales,
catering
saw
the
biggest
increase
of
15.8%,
while
sports
and
entertainment
products
saw
a
2.6%
year-on-year
increase.
Big-ticket
items
such
as
autos
and
home
appliances
saw
sales
declines
in
July
from
a
year
ago.

Jewelry
saw
sales
drop
by
10%
during
that
time.

Retail
sales
posted
the
slowest
growth
since
a
decline
in
December, according
to
official
data.

The
statistics
bureau
noted
an
“intricate
and
complicated”
situation
overseas
and
domestically,
and
“insufficient”
domestic
demand.

“We
must
intensify
the
role
of
macro
policies
in
regulating
the
economy
and
make
solid
efforts
to
expand
domestic
demand,
shore
up
confidence
and
prevent
risks,”

the
bureau
said
in
an
English-language
release.

After
an
initial
rebound
from
the
pandemic
earlier
this
year,
China’s
economy
has
come
to
grips
with
long-standing
problems
and
slowing
global
demand
for
its
products.

Exports
plunged
by
14.5%
year-on-year
in
July,
following
a
12.4%
drop
in
June.
Factory
activity

contracted
for
a
fourth-straight
month
in
July,
according
to
an
official
survey.

Domestic
demand
has
remained
muted
outside
of
summer
tourism.
Imports
fell
by
12.4%
year-on-year
in
July
and
have
mostly
declined
each
month
from
the
same
period
in
2022.

The
consumer
price
index
fell
in
July,
adding
to
growing
worries
about
deflation.

Weighing
on
the
economy
is
an
ongoing
slump
in
the
massive
real
estate
sector.

Property
market
troubles
have
come
to
the
forefront
again
with
developer
Country
Garden
now
on
the
brink
of
default.

Top
leaders
in
late
July
signaled
a

shift
away
from
its
crackdown
on
real
estate
speculation.
Authorities
have
announced
a

raft
of
measures
to
boost
consumption,
private
sector
investment
and
foreign
investment.

But
the
overall
approach
to
additional
stimulus
has
been
cautious,
especially
in
real
estate.

“Beijing
has
already
done
some
things
to
ease
the
tensions
in
the
property
sector,
but
it
has
been
too
slow
and
too
little,
in
our
view,”
Ting
Lu,
chief
China
economist
at
Nomura
said
in
a
note
Monday.

“We
believe
that
at
some
point
in
time
Beijing
will
be
compelled
to
take
more
measures
to
stem
the
downward
spiral.”

Factory
activity
in
July
picked
up
to
its
highest
since
March,
while
core
CPI,
that
strips
out
food
and
energy
prices,
actually
posted
its
fastest
increase
in
July
since
January.

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