China's economy slows further as retail sales, investment stall in July
China's economy slowed further in July, with retail sales barely growing and the investment slump deepening, according to official data. The figures reinforce concerns about the health of the world's second-largest economy, which is grappling with a widening supply-demand imbalance. Analysts say the data adds pressure on Beijing to expand stimulus measures.
China's economy showed fresh signs of strain in July, as retail sales growth flattened and fixed-asset investment fell further, according to data released this week. The figures mark a continuation of the slowdown that has weighed on the world's second-largest economy through much of 2026.
Economists said the numbers point to a deepening imbalance between production and domestic demand, with factories continuing to outpace consumer spending. Weak consumer confidence, a prolonged property-sector downturn and cautious household spending have all been cited as drags on growth.
The data adds to pressure on Chinese policymakers to expand fiscal and monetary support before the end of the year. Beijing has already rolled out targeted stimulus measures in 2026, but analysts say July's figures suggest more may be needed to hit official growth targets.
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