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BEIJING -China will strengthen fiscal and monetary policies to support employment, a cabinet meeting chaired by Premier Li Keqiang said, according to a report from state television on Monday.

Data released earlier showed China's factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks, floods, and high commodity prices pressured businesses, adding to signs the economic recovery is losing momentum.

China will step up "cross-cyclical" adjustments, keep economic operations within a reasonable range, and make good use of local government debt to spur effective investment, said the meeting, according to CCTV.

China will also improve policies to counter increases in key commodity prices, and make good use of funds released by a recent cut to the amount of cash banks have to hold as reserves to support smaller companies, it said. REUTERS



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