China’s Economic Slowdown in July Amid Trade and Property Market Pressures

China's economy exhibited signs of deceleration in July as factory output and retail sales growth slowed, while housing prices continued their decline. The latest data underscores the persistent challenges posed by U.S. tariffs and a faltering property sector.

Export figures provided a rare bright spot, with a 7.2% year-on-year surge in July, as businesses capitalized on the temporary truce in the U.S.-China trade war. However, this growth partly reflects favorable base effects, and manufacturers remain cautious, scaling back investments and production amid ongoing uncertainty.

The economic headwinds are compounded by seasonal flooding, which has disrupted business activity across multiple regions. Oxford Economics notes that while export front-loading has supported recent performance, its diminishing impact is now evident in weakening industrial production.