China's July Factory Output and Retail Sales Miss Forecasts

China's economic momentum showed further signs of cooling in July, with official data released on Monday revealing that industrial production and retail sales both grew at a slower pace than analysts had anticipated.

The National Bureau of Statistics reported that industrial output expanded 4.5% in July compared with the same month last year. This marks a deceleration from the 5.3% growth recorded in June and falls short of the 4.8% rise that a poll of 26 analysts had projected.

Retail sales, a key indicator of consumer spending, increased by just 0.6% year-on-year in July. This was a notable slowdown from the 1% growth seen in June and well below the 1.5% forecast by economists.

Investment activity also remained under pressure. Fixed-asset investment contracted by 6.7% during the first seven months of the year, a steeper decline than the 6% drop that was expected. For the January-to-June period, investment had fallen by 5.7%.

The latest figures underscore the challenges facing the world's second-largest economy as it grapples with subdued domestic demand and external headwinds.