Amid Sluggish Industrial Growth, China’s Economy Sees Surge in Consumption and Trade in July 2024

China’s National Bureau of Statistics released July 2024 economic data showing a mixed landscape. Industrial output slowed while consumer spending and foreign trade surged. Retail sales exceeded expectations, but industrial production fell short. China faces challenges of maintaining economic momentum amidst structural adjustments and external uncertainties.

The National Bureau of Statistics has released July 2024 economy data for China, revealing a nuanced economic landscape. Industrial output experienced a deceleration, with growth slowing compared to previous months. However, this was offset by a notable surge in consumer spending and foreign trade.

China’s National Bureau of Statistics (NBS) has released the economic data for July 2024, providing a detailed view of the country’s industrial, retail, and investment performance. The figures reveal a mixed economic landscape, with retail sales exceeding expectations, yet industrial production falling short of forecasts. The continued expansion of consumer spending indicates growing domestic demand, despite persistent challenges in the real estate sector and fixed asset investments.

As the Chinese government focuses on boosting domestic demand, the challenge of maintaining economic momentum amidst structural adjustments and external uncertainties remains a significant concern moving forward.

*Added value of companies with an annual main business income of over RMB 20 million (US$2.8 million)

In July, China’s industrial sector experienced a slight deceleration in year-on-year growth compared to the previous month, with industrial value-added increasing by 5.1 percent. Although this represented a 0.2 percentage point slowdown from June, it still indicated solid performance.

Equipment manufacturing played a crucial role in stabilizing overall industrial growth. The sector’s added value increased by 7.3 percent from the previous year. Moreover, certain high-tech and electronic equipment manufacturing sectors exhibited particularly strong performance:

Intellectual property-intensive industries and core digital economy sectors also saw substantial growth, with revenues increasing by 9.6 percent and 9.5 percent year-on-year. Additionally, the impact of policies promoting industrial equipment upgrading became evident. Equipment purchases by enterprises grew by 8.5 percent, with significant increases in industrial and transportation sectors.

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