Copper prices fell on Friday on the back of bleak economic data from China, the worlds largest metals consumer, although losses were limited by a weaker dollar and hopes that the data would prompt Beijing to roll out more stimulus measures.

Three-month copper on the London Metal Exchange fell 0.4% to $9,730 a metric ton in official trading, retreating from Tuesdays two-week high.

Fridays data showed Chinas factory output growth slowed to its weakest in eight months in July, while retail sales growth also decelerated sharply.

Shanghai copper futures fell 0.1% to 79,060 yuan ($11,008.23) a ton.

Neil Welsh, head of metals at Britannia Global Markets, said: In the context of base metals, these indicators point to weak demand, which could weigh on metal consumption and prices amid concerns over a slowdown in Chinas economy.

However, prices found support on hopes that the weak data would increase pressure on Chinese policymakers to introduce more measures to boost domestic demand.

A weaker US dollar also supported the market, as investors remained cautious ahead of import price data. A weaker dollar lowers the cost of dollar-priced commodities for buyers using other currencies.

US copper futures on Comex fell 0.1% to $4.48 a pound by 12:25 GMT, putting Comexs premium over LME copper at $127 a ton, or 1.3%.

Among other metals, aluminium on the LME fell 0.7% in official trading to $2,601.50 a ton, zinc lost 1.3% to $2,813, lead dropped 0.3% to $1,984, while nickel rose 0.3% to $15,075, and tin gained 0.3% to $33,550.