The latest economic data from China show that the world’s second-largest economy unexpectedly slowed in July, raising concerns that recovery from the second quarter’s slowdown, when the economy narrowly escaped a contraction, hasn’t gained traction yet.
Weaker than expected July figures from industrial production and retail sales suggest that the recovery process is still fragile, prompting some economists to downgrade their forecasts for economic growth in the third quarter from an initial 4.5% to 4%, with threats of a possible further downgrade, depending on the strength in China’s exports in coming months.