China’s Retail Sales Beat Expectations, Q2 GDP Grows 7.9%

China’s gross domestic product (GDP) increased 7.9 percent in the second quarter year-on-year, the National Bureau of Statistics said Thursday. That fell short of estimates of 8.1 percent growth for the period.

GDP in the second quarter rose 1.3 percent from the first quarter, which marks a faster rise than the 0.6 percent pace between this year’s first quarter and 2020′s fourth quarter.

In the first quarter, China’s GDP grew 18.3 percent, following a pandemic-induced contraction in Q1 2020.

Retail sales rose 12.1 percent in June from a year ago, more than the expected 11 percent level forecast by Reuters.

There have been concerns about retail sales growth lagging behind that of China’s overall economy, having missed analysts’ expectations for the first two months of the second quarter.

Further Reading: Why Sourcing From China Just Got More Expensive

Surging demand and supply disruptions are driving up prices for raw materials, labour and shipping in fashion’s largest manufacturing hub.