"Negative impact on the economy will continue," Zhu Zhixin, a top government planner, told a Beijing news conference.

Growth rate was 1.8 percent lower than the same period a year ago, as the government reportedly put in several measures to cool the economy. Zhu said. Furthermore, overseas demand delivered a blow to the export sector, the Xinhua news service reported.

More than 7.56 million jobs were created in the first seven months, Zhu said, and holding the line on wage hikes will be difficult.