- Title: China July industrial output growth falls to 17-yr low as trade war escalates
- Date: 14th August 2019
- Summary: BEIJING, CHINA (AUGUST 14, 2019) (REUTERS) SPOKESWOMAN FOR CHINA'S BUREAU OF STATISTICS, LIU AIHUA, ARRIVING FOR NEWS CONFERENCE JOURNALISTS SITTING (SOUNDBITE) (Mandarin) SPOKESWOMAN FOR CHINA'S NATIONAL BUREAU OF STATISTICS, LIU AIHUA, SAYING: "Industrial production has been slowing steadily and high tech manufacturing grew quickly. In July, the total value added of the industrial enterprises above the designated size (industrial output) grew by 4.8% year-on-year, 1.5% lower than that of the previous month." JOURNALISTS SITTING (SOUNDBITE) (Mandarin) SPOKESWOMAN FOR CHINA'S NATIONAL BUREAU OF STATISTICS, LIU AIHUA, SAYING: "Generally speaking, in July the national economy continued to perform within the reasonable range, sustaining the momentum of progress in overall stability in July. However we must be aware that given the complicated and grave external environment and the mounting downward pressure on the economy at home, the foundation for the sustainable and healthy development of the economy still needs to be consolidated." JOURNALISTS SITTING, CAMERA OPERATORS FILMING (SOUNDBITE) (Mandarin) SPOKESWOMAN FOR CHINA'S NATIONAL BUREAU OF STATISTICS, LIU AIHUA, SAYING: "On the one hand we've felt this considerable downward pressure. But on the other hand, over the course of this year we can say that the government has implemented a series of measures, including countercyclical adjustment policies. Currently these policies are, we can say, gradually having an (positive) effect." CAMERA OPERATOR FILMING (SOUNDBITE) (Mandarin) SPOKESWOMAN FOR CHINA'S NATIONAL BUREAU OF STATISTICS, LIU AIHUA, SAYING: "Total retail sales of consumer goods for this past month (July), due to effects from (a drop in) auto (sales), saw a certain downward trend. Now, in fact, the (drop in the) service sector's production rate is mainly related to the downward trend of retail sales." JOURNALISTS SITTING (SOUNDBITE) (Mandarin) SPOKESWOMAN FOR CHINA'S NATIONAL BUREAU OF STATISTICS, LIU AIHUA, WHEN ASKED ABOUT THE EFFECT OF THE TRADE WAR ON CHINA'S EXPORTS, SAYING: "It can be said that through (our) foreign trade policies, it can be said that the measures aimed at diversification and facilitation of trade continue to be effective. Overall exports accelerated in July. Exports were up 4.3% in that month (July). That's 4.2% faster than last month. Export performance is still good. So we can say, it shows that the impact (of the trade war on exports) is still generally controllable." NEWS CONFERENCE IN PROGRESS
- Embargoed: 28th August 2019 06:27
- Keywords: slowdown trade war Chinese economic slowdown Chinese economy exports China stats bureau trade dispute China statistics bureau Liu Aihua industrial output
- Location: BEIJING/DONGGUAN, GUANGDONG PROVINCE/ZHOUSHAN, ZHEJIANG PROVINCE, CHINA
- City: BEIJING/DONGGUAN, GUANGDONG PROVINCE/ZHOUSHAN, ZHEJIANG PROVINCE, CHINA
- Country: China
- Topics: Economic Events
- Reuters ID: LVA001AS6UMO7
- Aspect Ratio: 16:9
- Story Text:China reported a raft of unexpectedly weak July data on Wednesday (August 14), including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies.
Industrial output grew 4.8% in July from a year earlier, data from the National Bureau of Statistics showed, lower than the most bearish forecast in a Reuters poll.
Speaking at a news conference in Beijing, Liu Aihua, a spokeswoman from China's national bureau of statistics said "given the complicated and grave external environment and the mounting downward pressure on the economy at home, the foundation for the sustainable and healthy development of the economy still needs to be consolidated."
Retail sales growth was also weaker than the most pessimistic forecast, rising 7.6% in July from a year earlier, compared with 9.8% in June and analysts' expectations of 8.6%. When asked, Liu put this down to a drop in auto-sales in July.
China's economy has been slow to respond to a flurry of support measures rolled out since last year, with growth cooling to a near 30-year low in the second quarter. Business confidence also remains shaky, weighing on investment. Investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession.
(Production: Martin Pollard) - Copyright Holder: REUTERS
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