BEIJING (Reuters) -China’s factory output growth slumped to an eight month low in July, while retail sales also slowed sharply, reinforcing the challenge confronting policymakers as they strive to shore up an economy in the face of soft demand at home and external risks.

The underwhelming data, released by the National Bureau of Statistics (NBS) on Friday, come as Chinese policymakers navigate pressure on multiple fronts ranging from U.S. President Donald Trump’s trade policies to insufficient demand and excessive competition in domestic market.

Industrial output grew 5.7% year-on-year in July, the lowest reading since November 2024, and compared with a 6.8% rise in June. It missed forecasts for a 5.9% increase in a Reuters poll.

A temporary trade truce reached between China and the Uni

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