China’s sprawling real estate market has faced challenges following years of debt-fueled and rapid expansion. The latest data from the National Bureau of Statistics reveals disappointing numbers, as retail sales only increased by 2.5% in July compared to the previous year, falling short of the expected 4.5% growth. Industrial production also saw a slower increase of 3.7% instead of the projected 4.4%. Furthermore, fixed asset investment only rose by 3.4% in the first seven months of the year, lower than the forecasted 3.8%.
Notably, the report did not include the unemployment rate for young people, which has reached record levels in recent months. The urban unemployment rate rose from 5.2% in June to 5.3% in July. The release of specific data on youth unemployment has been suspended by the National Bureau of Statistics due to economic and social changes.
Additionally, real estate investment has experienced a significant decline of 8.5% compared to the previous year, surpassing the decline recorded in June. The suspension of the crackdown on real estate speculation and the implementation of measures to boost consumption, private sector investment, and foreign investment have been announced by top leaders in an effort to revive the struggling property market.
Concerns about deflation have arisen as China faces slowing growth and reduced global demand for its products. The consumer price index fell in July, further exacerbating these worries. The overall outlook for the economy is complicated, with insufficient domestic demand and complex global conditions.
Despite recent efforts, Beijing’s actions in the real estate sector have been deemed inadequate by experts. They anticipate that further measures may be necessary to prevent further decline in the sector. Nonetheless, factory activity in July saw an uptick, reaching its highest level since March, and core CPI experienced its fastest increase since January, excluding food and energy prices.
It is important to note that this information is evolving, and updates may follow.
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