China’s Economy Posts Sluggish Growth for the Second Quarter

Key Takeaways

• China’s second quarter economic data signals continued problems ahead.
• Consumer spending and private sector investment both remain weak points for the economy, without which sustainable growth will be hard to achieve.
• It remains unclear if China will introduce a sweeping stimulus package, but so far, the country has largely relied on monetary policy and targeted tax breaks, which appear to have had a limited effect.