Pressure intensified on the China to unleash stronger stimulus actions after industrial production growth in July fell to three-year low, according to the National Bureau of Statistics.
Manufacturing output last month rose 9.2 percent year-over-year, but the growth was 0.3 percentage points lower than in June. The last time production growth was so low was in May 2009. The disappointing figures from China come after neighboring South Korea and Japan saw industrial output fall from May to June.
In terms of Chinese production in July, excluding energy creation, transportation output was the weakest, expanding only 1.4 percent year-over-year. Manufacturing of automobile, computers and electronic equipment, nonmetal mineral products, chemical raw material and chemical products, and textiles saw double-digit growth.
Although analysts expect Chinese production to rebound by the end of the year, they warn the global manufacturing giant won’t rev up enough to pull the global economy out of its slump, according to the Associated Press. The Chinese government has taken a more cautious approach to stimulus since the global recession in 2008, choosing to invest in select infrastructure projects and cut interest rates. Efforts to boost domestic consumption have had mixed sucess.