12 August 2016 at 2:51 GMT
China’s recent economic stabilization faltered in July as factory output, retail sales and investment all slowed. Industrial production rose 6% from a year earlier in July, the National Bureau of Statistics said Friday. Retail sales climbed 10.2% last month, while fixed-asset investment increased 8.1% in the first seven months of the year. All three reading missed economists estimates. The slowdown sharpens the dilemma facing the nation’s policy makers – boost growth with cheap credit that risks undermining financial stability, or curb debt expansion even if that slows the economy. With tepid global demand giving no boost and businesses at home reluctant to invest, the government has increased fiscal support this year, even as it held off from further interest-rate reductions.
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