China's economic growth showed signs of slowing in July 2025, with factory output and retail sales growth declining to their lowest levels in several months. Industrial production rose 5.7% year-over-year in July, missing the estimated 6.0% and down from 6.8% in June, marking an eight-month low. Retail sales increased by 3.7% year-over-year, below the 4.6% forecast and the previous 4.8%, representing the slowest pace since December 2024. Year-to-date figures also reflected a slight deceleration, with industrial production up 6.3% and retail sales up 4.8%, both slightly below prior estimates. The slowdown is attributed to the ongoing impact of U.S. tariffs imposed under former President Donald Trump’s trade policies, as well as fading subsidies and austerity measures dampening consumer spending. Meanwhile, the U.S. industrial production stagnated in July, declining 0.1% month-over-month against expectations of no change, with mining and utilities output falling and manufacturing output remaining flat. Companies such as Caterpillar and Deere are facing tariff-related costs estimated at $15 billion, which are pressuring margins amid soft demand. The combined effects of tariffs and rising costs are challenging manufacturing sectors in both China and the United States, prompting concerns about economic momentum and potential stimulus measures in China.