China's economy growth cools further amid US tariff war


Despite still elevated prices in some of China's biggest cities, many analysts are still bearish on the market's overall outlook this year as demand in smaller cities - which account for 70% of sales by floor area - will likely falter, and as Beijing has not indicated it will ease nationwide property curbs anytime soon. Its revenue in the Greater China region, which includes Hong Kong and Taiwan, dropped 21.5% in the second quarter from the same period a year ago, to $10.22 billion.

In the second quarter, the country's GDP rose 6.2 percent year on year, lower than 6.4 percent in the first quarter, according to the data.

Analysts expect Beijing to unveil more stimulus measures to boost the economy, including possible interest rate cuts by the country's central bank, the People's Bank of China.

Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4%, adding to expectations that Beijing needs to do more to boost consumption and investment and restore business confidence.

China's buying and selling companions and traders are carefully watching the well being of the world's second-largest economic system because the year-long Sino-U.S. commerce warfare takes a heavier toll on companies and funding, fuelling worries of a world recession.

China's value-added industrial output is used to measure the output of large companies each with annual main business revenue of more than 20 million yuan (about Dollars 2.9 million), according to state-run Xinhua news agency.

Trade pressures have intensified since Washington sharply hiked tariffs on Chinese goods in May.

Analysts also say room for more aggressive monetary policy easing is being limited by fears of adding to high debt levels and structural risks. The US Federal Reserve has also signaled it may lower interest rates.

Trump blasts Facebook's Libra cryptocurrency, says US only has 'one real currency'
Powell said during his semi-annual testimony on monetary policy before the House of Representatives Financial Services Committee. He made that much clear in a Thursday evening tweetstorm dunking on the latest proposed entrant in the digital currency world.

Value-added industrial output, which measures production at factories, mines and utilities, rose 6.3% (link in Chinese) year-on-year in June, up from 5% growth in the previous month. Sales of automobiles surged 17.2% in the month, accelerating from a 2.1% gain in May.

Some analysts, however, questioned the apparent recovery in both output and sales.

Capital Economics said its in-house model suggested slower industrial growth, while the jump in vehicle sales may have been partly due to a one-off factor.

Spending on factories, real estate and other fixed assets rose 5.8% in the first half of the year, up 0.2 percentage points from the first five months.

"The monthly data were better than expected".

The growth was in line with the government's annual target of 6-6.5 percent set for 2019.

There were bright spots for the economy in Monday's economic data.

Its economy is in a "grave situation", China's National Bureau of Statistics said in a statement, according to CNN.