China’s economy grew more slowly than anticipated in the second quarter, with the consumer sector particularly weak. Retail sales growth dropped to an 18-month low as deflationary pressures led businesses to cut prices across various sectors. The government’s recent announcement of 300 billion RMB ($41.4 billion) in ultra-long treasury bonds, including funds for consumer trade-ins, is seen as insufficient to significantly boost economic recovery. While solid export growth has supported factory activity, domestic consumption remains depressed, exacerbated by falling property valuations. Analysts anticipate additional property-support measures following an upcoming Politburo meeting and are watching for updates from the official PMI and private sector Caixin factory surveys.