China suspends youth jobs figures as data misses estimates

(Sharecast News) - China's economic woes continued last month, as a deluge of data missed estimates and the country's statistics bureau controversially suspended publication of youth unemployment figures. July retail sales rose 2.5% on an annualised basis, well below expectations of a 4.5% increase. Meanwhile, industrial production increased 3.7% year on year. missing the 4.4% increased by analysts.



Fixed asset investment rose by 3.4% for the first seven months of the year from a year ago, below expectations of a 3.8% increase.

The People's Bank of China - the country's central bank - on Tuesday cut the medium-term lending facility rate - the interest for one-year loans to financial institutions - from 2.65% to 2.5%.

There was no breakdown of unemployment by age, but official figures published on Tuesday showed the overall rate had risen to 5.3% in July. The 16 - 24 age category has seen unemployment far above the overall jobless rate, reaching a record high of 21.3% in June.

The National Bureau of Statistics said the bureau is suspending the youth unemployment number release due to economic and social changes, and is reassessing its methodology.

A spokesman for the NBS said the method of calculating unemployment among young people needed to be reconsidered.

"The economy and society are constantly developing and changing. Statistical work needs continuous improvement", Fu Linghui told a news conference in Beijing.

China's sputtering economic recovery from the Covid pandemic is causing concerns about its effects on the broader global economy. It is a major consumer of key raw materials and the world's second largest economy is a vital importer and exporter of goods.

Those worries have also been compounded by fears its massive property sector is groaning under the weight of huge debts. On Monday the largest private real estate developer Country Garden warned that it could lose up to $7.6bn (£6bn) for the first six months of the year, sending global equities lower.

Reporting by Frank Prenesti for Sharecast.com



On a year-to-date basis, real estate investment fell by 8.5% from a year ago as of July, a greater decline than as of June.