China’s economic growth slows amid weak retail spending

Falling property and stock prices, as well as low wage growth, discouraged Chinese consumers from spending on big-ticket items, an analyst said. Photograph: Vincent Thian/AP

Pressure on Beijing to take steps to improve Chinese consumer confidence has intensified after news that weak retail spending dragged down the growth rate of the world’s second biggest economy.

With falling house prices still acting as a drag on activity, official figures showed the Chinese economy expanding at an annual rate of 4.7% in the second quarter – much weaker than the 5.1% expected by the financial markets.