Xi Struggles to Fix Chinese Consumer Gloom That’s Stinging World
- Retail giants including Starbucks, L’Oréal are hit by slowdown
- China leader has vowed more urgency in lifting domestic demand
This article is for subscribers only.
President Xi Jinping’s government is facing growing pressure to address China’s consumer spending downswing, as it becomes one of the biggest threats to global economic growth.
A key gauge of Chinese services activity that covers the retail industry was on the brink of contraction for the first time since last year in data released Wednesday. That was part of a disappointing snapshot of the economy offered in purchasing manager indexes for July, which revealed stubborn deflationary pressure even outside industries such as manufacturing.