China’s economy slowed in August, with key indicators falling short of expectations. Industrial output grew 5.2% yoy, down from 5.7% yoy in July and short of forecasts for 5.8% yoy, marking its weakest pace since August 2024. Retail sales also slowed, rising just 3.4% yoy versus 3.7% yoy previously and expectations of 3.8% yoy, signaling soft household demand despite ongoing government measures to support spending.
Investment activity showed the sharpest loss of momentum. Year-to-date fixed asset investment rose only 0.5%, far weaker than consensus 1.4% and July’s 1.6%. The drag came primarily from the property sector, where real estate investment plunged -12.9% in the first eight months. Excluding real estate, investment rose 4.2%.
The National Bureau of Statistics highlighted “many unstable and uncertain factors” in the global environment and warned that the economy still faces “multiple risks and challenges.” It urged stronger policy implementation to stabilize employment, businesses, and expectations, but the latest figures suggest momentum remains fragile, with property weakness continuing to weigh heavily on growth prospects.
