China economy under pressure as factory output, retail sales growth slow sharply

China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new Covid-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum. Industrial production in the world’s second largest economy increased 6.4% year-on-year in July, according to data released by the National Bureau of Statistics (NBS), against expectations for 7.8% growth and after rising 8.3% in June. Retail sales increased 8.5% last month, far lower than the forecast 11.5% increase and June’s 12.1% uptick. China’s economy has rebounded to its pre-pandemic growth levels, but the expansion is losing steam as…