Deepening the slowdown in the Chinese economy in August with retail sales, and industrial production is missing expectations

The economic slowdown in China deepened in August with a large group of major indicators that lack expectations, with the continued weak demand for domestic demand and Beijing campaign against excessive production.

Retail sales increased last month by 3.4 % from the previous year, and the data of the National Bureau of Statistics showed Monday, and analysts have lost the growth of 3.9 % growth in a Reuters poll and slowed out of 3.7 % growth in July.

Industrial product growth slowed to 5.2 % in August, compared to 5.7 % jumping in July, which represents its weakest level since August 2024, according to LSEG data. Economists expected the data to be unchanged from the previous month.

The fixed asset, which was reported on an annual basis, has expanded by only 0.5 %, with a sharp slowdown in expansion by 1.6 % in the period from January to July, and economists’ expectations without growth of 1.4 %.

Within this sector, the contraction in real estate investment worsened, and decreased by 12.9 % in the first eight months, as government data showed. Investment in the manufacturing and utility sector – including electricity, fuel and water supplies – increased by 5.1 % and 18.8 % over the previous year, respectively.

Johan Chang, the main economist at the Chinese Center at the Congress Council, said, noting that the investments of fixed assets in manufacturing are “modest and uneven growth”, citing the weak real estate activities of private developers and growth in government -based government investment in infrastructure and technology with high technology and industrial upgrade.

Chinese -based urban unemployment rate in August reached 5.3 %, increasing above 5.2 % in the previous month. The Statistics Office attributed the high unemployment rate to the graduation season.

“We must realize that there are many unstable and unconfirmed factors in the external environment (the external environment, and national economic development is still facing multiple risks and challenges.”

“We must completely implement macro policies, focus on maintaining employment, companies, market … stable expectations, deepening reform, openness and innovation, in order to enhance fixed and healthy economic development.”

Zhang noted that the service consumption has gained momentum, led by travel, entertainment and transportation, indicating a gradual transformation of spending on services.

Retail sales, with the exception of car consumption, grew by 3.7 % in August of the previous year. The growth of consumption in rural areas exceeded that in urban centers, 4.6 % grow in August last year.

A spokesman for NBS Fu Linghui said in a press conference after the issue that it was difficult to know whether the consumer enlargement had reached a turning point, while the consumer prices are expected to remain volatile.

The consumer price index in China decreased More than expected last monthDip 0.4 % from the previous year, while the shrinkage continued for producers for the third year.

Fu acknowledged uncertainty about “imported inflation” – as imported goods may rise due to reasons such as weakness of the yuan, high commodity prices, and high customs tariff rates. He also pointed to the support from the policies of “combating the revolution” targeting excessive competition and price wars from manufacturers that will eventually “leak” to consumer prices.

Among the groups that witnessed the largest growth, gold, silver and jewelry sales grew by 16.8 % in August of the previous year, while sports and entertainment products increased by 16.9 %, and furniture sales increased by 18.6 % from last year.

It was the largest oil, the largest oil, as well as products related to tobacco and alcohol.

The CSI 300 on the mainland is offered about 1 % after a short period of launch of economic data in China.

“The slowdown is not a surprise to the markets,” said Zeoye Zhang, president and chief economist at Pinpoint Asset Management, as the slowdown in the markets, as investors have already expected growth in the third quarter.

Zhang added that Beijing’s fiscal policy may turn into a “more supportive support”, but the large motivation package is unlikely, unless Beijing sees that the economy is at risk of losing its 5 % growth goal.