The Chinese economy still stumbles with industry production, and retail sales are disappointed

Beijing has struggled to re-ignite the second economy in the world since the end of the Covid-19, as the real estate sector that was previously in the debt crisis was immersed and exported to confront the opposite wind.

Trends contributed to a recession to consumer confidence, and withdrawn them on spending and threatening the goal of the official leaders of this year about 5 %.

Industrial production increased by 5.2 % year on an annual basis in August, according to the data of the National Bureau of Statistics (NBS), the slowest pace since the same month last year.

The number was missed by 5.6 % growth forecasts in the Bloomberg scanning of economists.

NBS also said that retail sales increased by 3.4 % last month – it is slower since November and decreased less than 3.8 % estimated in scanning Bloomberg.

“Activity data indicates an additional momentum last month,” Zishon Huang, a Chinese economist at Capital Economics, wrote in a note.

She said: “While some of this reflects temporary weather disorders, the basic growth clearly slides, which increases pressure on policy makers to support with additional support.”

The data also showed that the prices of new residential real estate decreased on an annual basis during August in 65 out of 70 cities included in NBS.

Urban unemployment was called up to 5.3 % last month, a slight increase of 5.2 % in July, according to NBS data.

“In the local offer, the supply is strong, the demand is weak and some institutions face operational difficulties,” the chief economist at NBS Fu Linghui said at a press conference on Monday.

“There is still a lot of instability and uncertainty in the external environment, and the (Chinese) economic performance still faces many risks and challenges,” Vu added.

One of the main challenges facing the economy is the tense relationship between Beijing and Washington as disputes over technology and geography.

The trade tensions between American China were on a trip in 2025, when the two sides slapped the rising tariffs on each other.

On Sunday, officials from the two countries started a new round of talks in Madrid, where they were appointed to calm disputes over the huge American definitions and other major issues.

Government officials against Tat reached triple numbers on both sides at one point this year, and Snarling.

The leaders have since reached an agreement to cancel the tensions, temporarily reduced duties to 30 % on the side of the United States and 10 % by China.

Last month, they agreed to extend their stops for 90 days until November 10.