China's economic recovery unexpectedly weakened further in July as the new outbreak of Covid-19 across the country affected consumer and business spending.
The National Bureau of Statistics (NBS) revealed industrial production rose 3.8% from a year ago, lower than June's 3.9% and also far short of expectations for a 4.3% increase.
Retail sales were reported to have grown at a slower pace with only a 2.7% increase from the 3.1% recorded previously, and far missed market estimates for a 5.0% increase in July.
While fixed asset investment recorded an increase of 5.7% in the past month, it was also worse than the market forecast for an increase of 6.2%.
However, a different situation can be seen in the labor market where the unemployment rate was recorded better than expected by decreasing to 5.4%.
The country's commitment to a zero-Covid policy has made it difficult for China to maintain any economic progress achieved following the threat of repeated sanctions after the reopening was implemented.
Meanwhile, the People's Bank of China (PBOC) in its surprise decision on Monday has lowered the medium-term loan rate (MLF) to 2.75% to restore demand.
