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The Chinese government reported today that the country’s economy slowed more than expected in July.

Retail sales were crimped by tough new virus restrictions introduced toward the end of the month to contain fresh outbreaks. Retail sales rose by 8.5% near over year. Analysts had expected growth of 10.9%.

Environmental policies designed to reduce pollution in the steel and cement sector, plus flooding in central China, kept industrial production to a 6.4% year over year increase instead of the 7.9% in economist forecasts.

Investment in fixed assets rose 10.3% year to year in the first seven months of 2021 against expectations for an 11.3% increase.

“July’s data suggest the economy is losing steam very fast,” Raymond Yeung, chief economist for Greater China at Australia and New Zealand Banking Group, told Bloomberg. The bank group downgraded its full-year growth forecast to 8.3%.

Chinese stocks fell on the news with Alibaba (BABA) down 3.14% at the close of trading in New York. Ten Cent Holding TCEHY) was lower by 4.80%. (JD) lost 4.57%. Food delivery giant Neituan (MPNGF) fell 6.42%.

Commodity stocks were lower on the news of slower growth in China. Southern Copper (SCCO), for example, lost 3.54% on the day,