Unemployment In China Rises For First Time In 5 Months In July, Economy Sees Slump In Recovery

The industrial production in the month increased at a slightly slower pace of 5.1 per cent in July. Comparatively, the industry’s output climbed at the rate of 5.3 per cent in June

Retail sales in the month inched up by 2.7 per cent on a year-on-year (YoY) basis. (Image Source: Unsplash)

Source : Unsplash

The Chinese economy maintained a slow pace of growth as the property crisis in the country continued and hampered any recovery in the economy. Official data released by The National Bureau of Statistics on Thursday showed that unemployment climbed for the first time since February to 5.2 per cent, as compared to 5 per cent clocked a month earlier.

A weak consumption also hindered the growth pace for the economy, the data found. The industrial production in the month increased at a slightly slower pace of 5.1 per cent in July. Comparatively, the industry’s output climbed at the rate of 5.3 per cent in June, reported Moneycontrol.

Retail sales in the month inched up by 2.7 per cent on a year-on-year (YoY) basis. This surpassed analysts’ expectations, the report noted. Comparatively, the figure touched 2 per cent in June.

Liu Aihua, spokesperson for the Statistics Bureau, noted that the consumption in the economy is expected to consolidate further ahead, backed by recent policies from the government intended to give a push to consumer spending.

The country launched plans last month to utilise 150 billion yuan ($20.9 billion) in government debt to fund the trade-ins for consumer goods like appliances and cars. This is expected to help boost spending.

Regarding unemployment in the country’s urban regions, Liu noted that it climbed 0.2 per cent in July as compared to June, however, this rise was attributed to the impact of the graduation season.

The property market in the country has been going through a slump after regulators put a stop to excessive borrowing by developers. This resulted in a fall in sales in the industry and a decline in the prices in the housing market. The aftermath of this breakdown was felt in other sectors of the economy such as construction, building supplies, and home appliances.