China: consumption barely grew in July, up only 0.6%

WHAT HAPPENED

China's consumption grew only 0.6% in July compared to the previous year, below the expected 1.5% and the 1% in June. Factory production also slowed: it advanced 4.5%, compared to 5.3% in June.

WHY IT MATTERS

China buys copper, soy, iron, and oil from other countries. If its families spend less and construction remains weak, orders to suppliers and exporters decrease; raw materials, factories, transport, and consumption feel the impact first.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, a slower China may reduce revenues for companies and countries linked to raw materials and emerging markets. Chinese exports, which grew 17.3% between January and July, currently cushion part of the blow.