China’s economic growth slowed to 6.2 per cent in the second quarter from a year earlier, the weakest pace in at least 27 years, as demand at home and abroad faltered amid an escalating trade war with the United States.
Monday’s official growth data marked a further loss of momentum for the economy from the first quarter’s 6.4 per cent, raising expectations that Beijing needs to announce more support measures to boost consumption and investment and restore business confidence.
Analysts had forecast gross domestic product in the April-June quarter rose 6.2 per cent.
China’s trading partners and financial markets are closely watching the health of the world’s second-largest economy as the Sino-US trade war gets longer and costlier, fuelling worries of a global recession.
Meanwhile, China’s industrial output grew 6.3 per cent in June from a year earlier, picking up from May’s 17-year low and handily beating market expectations.
Fixed-asset investments for the first half of the year rose 5.8 per cent from a year earlier, according to data published by the National Bureau of Statistics, compared with a 5.5 per cent rise forecast by analysts.
Private sector investment in fixed assets, which make up 60 per cent of the country’s total investments, rose 5.7 per cent in January-June, compared with a 5.3 per cent rise in January-May.
Retail sales for June rose 9.8 per cent in annual terms.
Analysts had expected growth to cool to 8.3 per cent from May’s 8.6 per cent.