China’s economy expanded 5.2% yoy in Q2, slightly above expectations of 5.1% yoy but down from 5.4% yoy in Q1. Sector data showed balanced growth across industries—primary output rose 3.7%, secondary 5.3%, and tertiary 5.5%. The National Bureau of Statistics noted that macroeconomic policies have supported stability, but also flagged persistent weakness in domestic demand and external headwinds.
June’s data painted a mixed picture. Industrial production accelerated from 5.8% yoy to 6.8% yoy, beating forecasts of 5.6% yoy and suggesting continued strength in export-facing sectors and manufacturing. However, retail sales cooled to 4.8% yoy, down sharply from May’s 6.4% yoy and missed expectation of 5.2% yoy.
Fixed asset investment year-to-date slowed to 2.8%, well below expectations of 3.7%. The decline in property investment deepened, falling -11.2% in H1, and private investment contracted -0.6%.
