China’s August retail sales miss forecast while investment slump deepens, piling pressure on Beijing
Retail spending rose less than expected as fixed-asset investment fell 7.2%, adding pressure on policymakers to support demand.
- China's National Bureau of Statistics reported a mixed August, as industrial output rose 5.2% while retail sales growth slowed to 0.4% year-on-year. The data reveals a deepening investment slump and persistent economic pressure.
- Urban fixed-asset investment shrank 7.2% for the year's first eight months, steepening from a 6.7% decline earlier. Credit expansion missed forecasts sharply, with new bank loans totaling just 60 billion yuan versus roughly 400 billion yuan expected.
- Acknowledging an "acute" imbalance between "strong supply and weak demand," the NBS noted that businesses continue to face operational difficulties. Outstanding loan growth hit a record-low 4.9%, highlighting failed stimulus efforts.
- Labour-Market conditions softened as the urban unemployment rate ticked up to 5.3% in August from 5.2% in July. Raymond Yeung, ANZ Research economist, said "September could represent an important policy window to revive business confidence ahead of October's Golden Week holidays."
- Policymakers have so far favoured incremental measures over aggressive stimulus to address these challenges. Analysts argue more fiscal support is necessary to shore up growth, though officials maintain a cautious macro-policy stance.
37 Articles
37 Articles
China's retail sales weaken as spending remains sluggish
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China retail sales growth weakens further in August
The 0.4 percent year-on-year increase in August, released by the National Bureau of Statistics, marked the second successive slowdown in growth following a one percent increase in June. It also missed the 0.8 percent lift predicted in a survey of economists by Bloomberg, though it was better than the 0.6 percent shrinkage in May. Beijing has grappled with sluggish domestic spending since the end of the Covid-19 pandemic, with stagnant activity w…
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