Key facts
- China's industrial output and retail sales decelerated in early second-half.
- Retail sales increased by 0.6% in July, below the 1.5% forecast.
- Industrial output grew 4.5% in July, missing the 4.8% forecast.
- China's crude oil imports jumped 22% in July to 8.45 million barrels per day.
- China's Q2 GDP growth was 4.3%, the slowest since 2022.
- April industrial output grew 4.1%, missing forecasts and marking the slowest growth since July 2023.
- April retail sales grew 0.2%, the weakest gain since December 2022 and below forecasts.
- April domestic car sales declined 21.6% year-on-year.
- April exports accelerated due to stockpiling amid fears of rising global input costs.
- The April jobless rate decreased to 5.2%.
China's economy began the third quarter with weaker-than-expected key economic indicators, raising concerns about its health and future crude oil demand. Retail sales saw only 0.6% annual growth in July, down from 1% in June and below the 1.5% forecast. Industrial output growth also missed expectations, rising 4.5% in July, slower than the 5.3% in June and below the 4.8% forecast. This follows a 4.3% GDP growth in Q2, the smallest since 2022. Despite the economic slowdown, China's crude oil imports rebounded in July, jumping 22% from June to an average of 8.45 million barrels per day, as the country took advantage of lower prices to stockpile reserves. This opportunistic buying has helped cap global oil prices, though analysts warn that a return to significant import levels could impact prices.