ISTANBUL

The Chinese economy posted downbeat results in July, as the industrial production, retail sales and fixed investments came in below market expectations, according to data from the National Bureau of Statistics released on Friday.

The industrial output was up 5.7% on an annual basis in July, below market estimates of a 6% growth, also slowing from 6.8% in June.

Chinese retail sales also rose 3.7% year-on-year, losing momentum from 4.8% in the previous month, also coming below the forecasts of a 4.6% increase.

In the January-July period, the fixed-asset investments in the second biggest economy increased 1.6% on an annual basis, sharply missing expectations of a 2.7% growth.

The statistics bureau blamed harsh weather and "ongoing challenges from the complex and unpredictable external environment" for the poor economic performance.

Last month, a number of areas around the nation experienced high temperatures, intense rainfall, and flooding, which forced companies and construction sites to halt operations.

While the momentum of production, consumption and investments decreased compared to the previous month, the effects of tariff uncertainty continued to be felt in the economy.

The effectiveness of the Chinese government's policies to stimulate domestic demand to offset external demand hampered by tariff hikes has been waning.

In previous months, retail sales have gained momentum thanks to the trade-in incentive programs implemented by the central and local governments for consumer goods.

According to data from the Chinese Ministry of Commerce, trade-in incentive programs, which provide incentive payments to those who exchange used automobiles, appliances, and electronics for new ones, generated 1.6 trillion yuan ($223 billion) in sales as of July 16.

Meanwhile, the overall urban unemployment rate increased to 5.2% in July from 5% in June.