August 17, 2021 - The National Association of Manufacturers (NAM) says China’s economy slowed more than forecast in July, owing to extreme weather events and the delta variant of COVID-19, according to The Wall Street Journal (subscription).
“Monthly indicators of industrial, consumption and investment activity all showed growth retreating more quickly than expected—and decelerating from June’s yearly growth rates—according to data released Monday by China’s National Bureau of Statistics.”
Retail sales growth was at 8.5% in July, compared to June’s 12.1% increase.
“In recent weeks, Goldman Sachs, Morgan Stanley and Nomura, among other large investment banks, had reduced their forecast for China’s full-year growth—to around 8.2% or 8.3%, from previous estimates ranging from 8.6% to 8.9%.”
Whether China’s policymakers will intervene to support the economy remains to be seen.
“One key question is how quickly authorities are able to control the current outbreak of the delta variant, which has resulted in the shutdown of a major Chinese port and led to broader travel restrictions across the country since it first appeared about a month ago.”