China's economy is slowing down in the second half-year, the last data showed for the month of July. Industrial production, commerce, investment, and consumption - all slowed down in the last month. Economists don´t expect any crisis or hard landing. The Chinese government would ensure the greatest economic growth by October. In October, exchanges and re-engagement of government officials are taking place, so the government should make every effort to the Chinese economy don´t have problems.
Some sectors, such as steel production resists of retardation so far. However, the planned fiscal tightening, together with the pressure to stop debts of companies, could also bring a slowdown to this sector.
Industrial production rose only 6.4% Yoy in July, what is the slowest growth since January. Last month, industrial production was 7.6% and analysts estimated 7.2%.
In spite of the weaker result, production in China is still strong and remains supported by the boom in infrastructure. Beijing is pouring money into the economy for road and rail construction, which has stimulated demand for the materials needed for construction. Chinese steel production soared to new records in July and electricity production is at its highest levels since May 2014.
Another figure that disappointed, was investment in tangible assets. They went up to 8.3% in July, from last 8.6%, and economists estimated the unchanged result. Real estate investment weakened the most extensively after the Chinese government decided to take measures to untie economic subjects. Growth in investment in residential property, including offices, slowed to 4.8% from 7.9% in July. New construction, one of the good indicators of confidence and sentiment, fell for the first time since September, up 7% Yoy.
Retail sales also went weaker than expected. Year-on-year growth was 10.4% in July, from 11.0% in June and below market estimates to 10.8%. Car sales continue to grow, but carmakers are slowing down production.
China has so far surprised its economic growth in the first half, but the second half doesn´t have to be as strong as the market expect. China grew by 6.9% in the first half of the year, but current pressures on equalization and less import and export in recent months could mean a slowdown in the Chinese economy in the next half-year.