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China's Growth Momentum Weakens Expansion in output, consumption and investment all slowed sharply

China's economy slowed in July with factory activity, investment, and retail sales disappointing, suggesting a pall over the world's No. 2 economy.

According to Homin Lee, a senior macro strategist at Lombard Odier, "July's main economic indicators suggest that the country's tariff-related swoon has begun," and the loss of momentum calls for the mid-year fiscal policy tweak.

China's economic growth exceeded expectations in the second quarter, with gross domestic product expanding 5.2% in April-June from a year earlier. Analysts at Morgan Stanley expect GDP growth to slip below 4.5% in the second half of the year due to "payback of front-loading, weaker global trade amid renewed tariff escalation, and continued deflation loop." Michelle Lam, Greater China economist at Societe Generale SA, said "it's a picture of strong supply but weak domestic demand, and export resilience is not going to last" and described the data as "not a good set of data despite the GDP beat."