The Chinese economy reported a better than forecast growth in the second quarter, buoyed by strong industrial production, but household consumption remained weak.

The world’s second-largest economy registered a growth of 3.2 percent in the April-June quarter on annual basis, following a whopping contraction of 6.8 percent in the previous three months. Analysts were in favor of a 2.2 percent expansion.

In the first half of this year, China recorded a contraction of 1.6 percent, where today’s growth is still 1.6 percent below the growth pace in the last quarter of 2019 and the 6.8 percent average expansion before the pandemic.

Industrial production climbed 4.8 percent in June from a year earlier, but retail sale plunged 1.8 percent, reflecting the weakness in household spending.

Despite the better than forecasts growth figures, China’s CSI 300 index sagged 4.81 percent, noting that Chin’s stock market has dropped 7 percent since Monday, falling from its highest level in five years.

As for the offshore yuan, it traded 0.24 percent down at 6.9988 per dollar, as worries in markets pushed the dollar up for the first time in five sessions.