BEIJING — China reported data for July that came in well below expectations as the real estate slump and Covid controls dragged down growth.

Retail sales grew by 2.7% in July from a year ago, the National Bureau of Statistics said Monday. That’s well below the 5% growth forecast by a Reuters poll, and down from growth of 3.1% in  June. Within retail sales, catering, furniture and construction-related categories saw declines.

Sales of autos, one of the largest categories by value, rose by 9.7%. The gold, silver and jewelry category saw sales rise the most, up by 22.1%. Online sales of physical goods rose by 10% year-on-year, faster than in June, according to CNBC calculations of official data.

Industrial production rose by 3.8%, also missing expectations for 4.6% growth and a drop from the prior month’s 3.9% increase.

Federal Reserve Chairman Jerome Powell reiterated the central bank’s commitment to bringing down inflation, saying Friday that it’s essential for the global financial system.

“The Federal Reserve’s strong commitment to our price stability mandate contributes to the widespread confidence in the dollar as a store of value. To that end, my colleagues and I are acutely focused on returning inflation to our 2 percent objective,” Powell said in introductory remarks for a Fed-sponsored conference on the global role of the U.S. currency.

Those comments come two days after the Federal Open Market Committee voted to raise benchmark interest rates by three-quarters of a percentage point to a targeted range of 1.5%-1.75%. Banks use the rate to set borrowing costs for short-term loans they provide to each other, but it also feeds through to a multitude of consumer products like credit cards, home equity loans and auto financing.

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But progressive Democrats in the House, eager to make good on campaign promises ahead of the 2022 midterms, could pose a new set of hurdles to the bipartisan infrastructure plan. 

Progressives aren’t expected to make dramatic changes to the infrastructure bill, but they insist that the Senate first pass a separate $3.5 trillion bill focused on poverty, climate change and health care.

The House is expected back from its recess Sept. 20.

The infrastructure proposal is the product of months of haggling between Republicans and Democrats and includes more than $500 billion above projected federal spending on upgrading the country’s transportation systems.