China’s economy posted one of its slowest quarterly growth rates on record. The slowdown was hardly a surprise: earlier this year, Chinese officials set the country’s lowest growth target since 1991. The weak growth is not coming from a decrease in manufacturing. In fact, exports rose 27% year over year in June. Instead, it’s coming from sluggish domestic demand. China's housing crisis continues to weigh on major cities, while jobs outside the manufacturing sector remain scarce, particularly for young people, leaving consumers cautious about spending.