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China retail sales drop for seven straight months

China retail sales drop for seven straight months

Data released on Friday from the National Bureau of Statistics showed that China’s retail sales plunged for a seventh straight month, while industrial production came below forecasts.

Retail sales slipped 1.1 percent in July year-on-year, marking the seventh straight monthly decline, after a drop of 1.8 percent in June. Analysts had predicted a 0.1 percent increase.

The main driver for July’s fall was the 11.0% drop in spending on catering, which largely reflected the result of social distancing measures.

Industrial output signaled a 4.8 percent rise, similar to the previous reading, coming below estimates of 5.1 percent.

Today’s figures showed that China’s recovery is still not strong enough to trigger a V-shaped growth, following the negative impact of the corona pandemic measures.

As of 07:40 GMT, the US dollar was 0.03 percent down versus the offshore yuan at 6.9457, ahead of U.S. retail sales data due later in the day.

China’s CSI 300 index climbed 1.49 percent to 4,704.63, while Hong Kong Hang Seng index plummeted 0.08 percent to 25,207.82.

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