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China's Economy Weakened Further in July, Early Indicators Show

  • Growth remains tepid amid trade uncertainty and weaker demand
  • Policy easing will continue but will be restrained: Citi
Views of Shanghai's Financial District as Confusion Heightens Amid Push to Increase Private Credit
Photographer: Qilai Shen/Bloomberg

China’s economy continued to weaken in July, bolstering the case for greater policy support to shore up growth as talks over the trade dispute with the U.S continue.

The slowdown is seen in a Bloomberg Economics gauge aggregating the earliest available indicators on market sentiment and business conditions. While China and the U.S. will resume in-person negotiations this week after an almost three-month hiatus, small firms’ worries about business have deepened, a measure of exports is getting worse, and decelerating producer prices continue to squeeze profits.