China GDP grew only 0.4% yoy in Q2, missing even the expectation of 1.0% yoy. For June, industrial production rose 3.9% yoy, below expectation of 4.3% yoy. Nevertheless, retail sales rose 3.1% yoy, above expectation of 0.4% yoy. Fixed asset investment rose 6.1% ytd yoy, versus expectation of 6.0%.
“Domestically, the impact of the epidemic is lingering,” NBS spokesman Fu Linghui said. “Economic growth is still much lower than its potential, as the fear of Covid outbreaks continues to hurt consumer and corporate sentiment… Even accounting for June’s strength, the data are consistent with negative year-on-year growth last quarter,” he added.
