China's economy showed slower growth in July, marking a sluggish start to the second half of the year. This downturn follows one of the country's lowest quarterly growth readings on record for the three months ending in June.
Recent data reveals a slump in industrial output and retail sales, with industrial output, consumption, and investment all performing worse than forecast. These figures suggest that the world's second-largest economy continues to falter.
The cooling economic activity is linked to a deepening supply-demand imbalance. While surging exports fueled by the AI boom have increased, they have failed to offset a persistent weakness in domestic demand.
These developments are reinforcing concerns regarding the health of the economy and reviving pressure on Beijing and policymakers to intervene with measures to support growth.