China’s Economy Slows in July

China’s economy showed signs of slowing in July, according to new data released on Friday by the National Bureau of Statistics. Growth declined across several economic indicators, including industrial output, retail sales and fixed asset investment (excluding rural households).

As the following chart shows, while industrial output was up 5.7 percent in July 2025 compared to July 2024, it marked a deceleration from June’s 6.8 percent year-on-year growth. It was also the softest level of growth recorded since last November. This figure includes the output from both factories and mines, as well as utility sectors. A closer look at industrial output figures shows that manufacturing activity growth slowed from 7.4 percent in June year-on-year to 6.2 percent in July, while mining output fell from 6.1 percent year-on-year to 5 percent. However, electricity, heat, gas and water production growth accelerated from 1.8 percent to 3.3 percent in the same time frame.

Total retail sales of consumer goods saw growth of 3.7 percent compared to July last year. This was below analysts’ prior forecasts for 4.6 percent growth and also marks a deceleration from June’s figure of 4.8 percent growth year-on-year. Retail sales are often used as a business indicator to measure overall economic health and consumer confidence.

National fixed asset investment (excluding rural households) is calculated by the NBS as year-to-date. In January to July of this year, NFA was up 1.6 percent compared to the same seven month period in 2024. This too is slower than last month’s calculation, which showed a 2.8 percent average across the first six months of the year.

The NBS said that, generally speaking, the national economy demonstrated "notable resilience and vitality”, with Fu Linghui, the NBS spokesperson, adding during a news conference that “the international environment in July was complex and severe, with the continued impact of trade protectionism and unilateralism.” In addition to the continued uncertainty surrounding U.S. President Donald Trump’s tariffs last month, the country also faced high temperatures, heavy rains and flooding which impacted mine and factory operations.

Urban unemployment remained fairly steady in July, ticking up to 5.2 percent in China from 5.0 percent the month before. Beijing says this change was largely due to seasonal changes such as it being the graduation season.