The Chinese economy showed signs of slowing down in July. In July, industrial production increased by 5.7 % and retail sales increased by 3.7 %, while fixed capital increased by 1.6 % in the first 7 months compared to the same period last year.
It has been observed that the increase in production, consumption and investing in the Chinese economy, which continues to feel the impact of uncertainty created by the US tax rate initiated by the United States, slowed compared to previous months. The National Statistics Office (UTUBB) announced the data set including industrial production, retail retail, fixed capital and unemployment data in July 2025. In July, industrial production increased by 5.7 % and retail sales increased by 3.7 %, while fixed capital increased by 1.6 % in the first 7 months compared to the same period last year. While acceleration of production, consumption and investment decreased compared to the previous month, the impact of uncertainty of tariffs in the economy continues to be felt.
Accelerating production and consumption decreased Industrial production, calculation of production output of industrial enterprises over 20 million yuan (about 2.79 million dollars) with annual revenue, up 5.7 % in July compared to the same period last year. The increase in industrial production loses behind the increase of 6.8 percent in June. Industrial production increased by 5.9 percent in January and February, 7.7 % in March, 6.1 percent in April, 5.8 in May and 6.8 in June. Retail sales, accepted as a measure of consumption, an increase of 3.7 % in July, while an increase of 4.8 % in June has dropped behind. Retail sales increased by 4 percent in January and February, 5.9 percent in March, 5.1 percent in April, 6.4 percent in May and 4.8 in June. It was observed that the impact of policies was implemented by the Chinese government to revive the domestic demand to balance the external demand blocked by increasing taxes. In the previous months, retail sales have accelerated the influence of trade encouragement programs made by the central government and local authorities on consumer products. According to the data of the Chinese Ministry of Commerce, cars, white goods, electronic products have changed incentives for those who change the old people with a new exchange program, from July 16, 1.6 trillion yuan ($ 223 billion) has created sales. Reduced investment Infrastructure, real estate, machinery and hardware costs, including fixed capital investment, up 1.6 % per year in the first 7 months, while 2.8 % in the first 6 months were lagged behind. In reducing fixed capital investments, the impact of continuous decline in real estate has been observed in the past 3 years. Real estate investment, down 12 % in the first 7 months, faster faster 11.2 % in the first 6 months. Not including real estate investment, fixed capital investment increased by 5.3 % in the first 7 months. The general unemployment rate in cities, 5 % in June, increased to 5.2 % at the end of July.