CHINA’S ECONOMIC ENGINE IS LOSING POWER
China’s July data just delivered a fucking brutal warning: the world’s second-largest economy is losing momentum across multiple fronts at once.
Retail sales grew only 0.6% YoY, crushing expectations for 1.5% and slowing from 1.0% in June.
Industrial production rose 4.5%, below the 4.8% forecast and down sharply from 5.3% in June.
Urban fixed-asset investment fell 6.7% through July, worse than the expected -6.0% and weaker than the -5.7% recorded through the first half.
Then comes the fucking ugly part:
Property investment: -19.2%
Infrastructure investment: -3.6%
Manufacturing investment: -1.7%
Urban unemployment climbed to 5.2%, from 5.0% in June.
And youth unemployment remains a major pressure point, with the official rate reaching 14.9% in June.
China’s problem is no longer one isolated weak indicator.
CONSUMPTION IS STALLING.
INVESTMENT IS CONTRACTING.
PROPERTY IS STILL BLEEDING.
INDUSTRIAL MOMENTUM IS FADING.
EMPLOYMENT IS UNDER PRESSURE.
The old growth machine is fucking struggling.
For decades, China leaned heavily on property, infrastructure, manufacturing and investment.
Now property is collapsing, local-government financing is constrained, private investment is weak, and households are reluctant to spend.
Retail sales growth of just 0.6% is especially ugly because Beijing desperately needs domestic consumption to become a stronger engine of growth.
Instead, consumer demand is barely moving.
China’s nominal retail growth reportedly slowed to just 1.3% in H1, compared with 5% a year earlier, while government trade-in subsidies that previously pulled consumption forward are becoming less effective.
Meanwhile, consumer inflation was only 0.5% in July, with core CPI at 0.9%.
That combination screams one thing:
DEMAND IS WEAK.
And when demand is weak, companies have less reason to invest, hire or expand.
That feeds directly into the labor market.
$BTC
China’s July data just delivered a fucking brutal warning: the world’s second-largest economy is losing momentum across multiple fronts at once.
Retail sales grew only 0.6% YoY, crushing expectations for 1.5% and slowing from 1.0% in June.
Industrial production rose 4.5%, below the 4.8% forecast and down sharply from 5.3% in June.
Urban fixed-asset investment fell 6.7% through July, worse than the expected -6.0% and weaker than the -5.7% recorded through the first half.
Then comes the fucking ugly part:
Property investment: -19.2%
Infrastructure investment: -3.6%
Manufacturing investment: -1.7%
Urban unemployment climbed to 5.2%, from 5.0% in June.
And youth unemployment remains a major pressure point, with the official rate reaching 14.9% in June.
China’s problem is no longer one isolated weak indicator.
CONSUMPTION IS STALLING.
INVESTMENT IS CONTRACTING.
PROPERTY IS STILL BLEEDING.
INDUSTRIAL MOMENTUM IS FADING.
EMPLOYMENT IS UNDER PRESSURE.
The old growth machine is fucking struggling.
For decades, China leaned heavily on property, infrastructure, manufacturing and investment.
Now property is collapsing, local-government financing is constrained, private investment is weak, and households are reluctant to spend.
Retail sales growth of just 0.6% is especially ugly because Beijing desperately needs domestic consumption to become a stronger engine of growth.
Instead, consumer demand is barely moving.
China’s nominal retail growth reportedly slowed to just 1.3% in H1, compared with 5% a year earlier, while government trade-in subsidies that previously pulled consumption forward are becoming less effective.
Meanwhile, consumer inflation was only 0.5% in July, with core CPI at 0.9%.
That combination screams one thing:
DEMAND IS WEAK.
And when demand is weak, companies have less reason to invest, hire or expand.
That feeds directly into the labor market.
$BTC