China suspends release of youth unemployment rates as economic data disappoints

SLOWING RETAIL GROWTH

Tuesday’s announcement that youth unemployment data would be suspended came as Beijing released a series of weak economic indicators for July.

Retail sales, a key gauge of consumption, grew 2.5 per cent year-on-year in July, the National Bureau of Statistics said, down from 3.1 per cent in June and falling short of analyst expectations.

Chinese leaders have sought to boost domestic consumption in recent weeks, with the State Council last month releasing a 20-point plan to encourage citizens to spend more in sectors including vehicles, tourism and home appliances.

The country’s top leaders have warned that the economy faces “new difficulties and challenges” as well as “hidden dangers in key areas”.

Overall, unemployment rose to 5.3 per cent in July compared with 5.2 per cent in June, the NBS said.

The NBS said industrial production grew 3.7 per cent in July from a year ago, down from 4.4 per cent in June.

The recent data suggests China may struggle to achieve a five per cent growth target set for the year.

The world’s second-largest economy grew just 0.8 per cent between the first and second quarters of 2023, according to official figures.