Market View: China’s factory output hits eight-month low - is the recovery at risk?

Money Matters with Hongbin Jeong and Chua Tian Tian

China reported a slowdown in economic activity, with factory output rising 5.7% year-on-year in July, the slowest pace in eight months, and retail sales increasing just 3.7%, the weakest since December 2024, signaling a softer-than-expected recovery.

Meanwhile, Japan’s economy grew faster than expected in the second quarter, with GDP rising 1.0% annualized, boosted by resilient exports and stronger-than-anticipated capital expenditure.

Private consumption increased modestly by 0.2%, reflecting steady domestic demand even as global uncertainties, including U.S. tariffs, continue to weigh on the economy.

Across the Pacific, U.S. inflationary pressures are resurfacing. Producer prices jumped 0.9% month-on-month in July, the largest increase in three years, driven by broad-based gains in both goods and services.

On a year-on-year basis, the producer price index rose 3.3%, up from 2.4% in June, underlining persistent inflationary pressures that could influence Federal Reserve policy moving forward.

On Market View, Alexandra Parada speaks to Benjamin Goh, Head of Research and Investor Education at SIAS, to discuss more about the latest market movements.

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