Chinese industrial production grew less than expected in August as the country’s key manufacturing sector remained under pressure from softening overseas demand amid steep U.S. trade tariffs.
Retail sales also missed expectations, indicating that private consumption remained weak as support from Beijing’s stimulus measures began to fade.
Industrial production grew 5.2% year-on-year in August, data from the National Bureau of Statistics showed on Monday. The print was weaker than expectations that growth would remain steady at the 5.7% pace seen in July.
The print highlighted sustained pressure on China’s manufacturing sector from U.S. trade tariffs, which still amounted to around 50% on several goods. Outside the U.S., softening economic conditions in major markets such as Japan and Europe also weighed.
Weak demand saw Chinese fixed asset investment barely grow in August, at 0.5% y-o-y. The print also missed expectations of 1.5% and slowed further from the 1.6% seen in July.
This came against the backdrop of weakening private spending, with Chinese retail sales growing 3.4% in August, weaker than expectations of 3.8% while also slowing from 3.7% seen in the prior month.
The reading comes following weak consumer inflation data for August, which also pointed to a slowing in private spending. While Beijing had doled out scores of supportive measures since late-2024– most notably a host of subsidies on electronics and consumer goods– the effects of these measures were seen petering out in recent months.
Such a trend is expected to attract more stimulus from Beijing.
Other data showed China’s property market also remained weak, with house prices falling 2.5% y-o-y in August.
Source :
https://www.investing.com/news/economic-indicators/china-industrial-production-retail-sales-grow-less-than-expected-in-august-4237872
