China’s economic growth is slowing down!
Although retail sales and investment weakened, industrial production grew more than expected.
China’s economic activity indicators were mixed in August. Although retail sales and investment weakened, industrial production grew more than expected.
According to the National Bureau of Statistics, retail sales increased by 0.4% year-on-year in August. This was below the 0.6% growth recorded in July and economists’ expectation of 0.8%.
Meanwhile, industrial production increased by 5.2% in August. This was higher than the 4.5% growth recorded in July and exceeded analysts’ forecast of 4.8%.
Fixed-asset investment in urban areas also fell by 7.2% in the first eight months of the year. In the January-July period, the figure had declined by 6.7%. The surveyed unemployment rate in urban areas rose to 5.3% in August.
The NBS said China’s economy is facing a significant imbalance between strong supply and weak demand. The agency called for stronger domestic demand, strengthened macroeconomic policies and faster industrial transformation.
Under these conditions, Beijing’s main goal is to revive domestic demand, stabilize investment and maintain economic growth. These indicators will be particularly important for the market in the coming period.