China39;s Q2 GDP grows less than forecast
Factory output, retail sales growth slows
More policy support seen needed to keep growth on track

BEIJING, July 15 Reuters China39;s economy grew much slower than expected in the second quarter as a protracted property downturn and job insecurity knocked the wind out of a fragile recovery, keeping alive expectations Beijing will need to unleash even more stimulus.

The world39;s secondlargest economy grew 4.7 in AprilJune, official data showed, its slowest since the first quarter of 2023 and missing a 5.1 forecast in a Reuters poll. It also slowed from the previous quarter39;s 5.3 expansion.

Of particular concern was the consumer sector, with retail sales growth grinding to an 18month low as deflationary pressures forced businesses to slash prices on everything from cars to food to clothes.

Overall, the disappointing GDP data shows that the road to hitting the 5 growth target remains challenging, said Lynn Song, chief economist for Greater China at ING.

A negative wealth effect from falling property and stock prices, as well as low wage growth amid various industries39; cost cutting is dragging consumption and causing a pivot from big ticket purchases toward the basic 39;eat, drink and play39; theme consumption, he added.

Among those under pressure was Swatch Group, the world39;s biggest watchmaker, which reported a steep drop in sales and earnings amid weak demand in China.

The yearslong property crisis deepened in…