The slowdown in China is deepened in August with retail sales, missing expectations of industrial production

The Chinese economy lost momentum in August, growth slowing down at all levels while low domestic demand persisted and the Beijing campaign against industrial overcapacity has slowed down production.

Last month, retail sales increased by 3.4% compared to the previous year, the data from the National Bureau of Statistics showed on Monday, the estimates of missing analysts for growth of 3.9% in a reuters survey and slowing compared to the growth of 3.7% of July.

The growth in industrial production slowed down 5.2% in August, compared to the leap of 5.7% in July, marking its lowest level since August 2024, according to LSEG data. Economists expected the data to be unchanged from the previous month.

Investment with fixed networks, said one year to date, extended to only 0.5%, a net slowdown compared to the expansion of 1.6%during the period from January to July and underlying the forecasts of economists for growth of 1.4%.

In this segment, the contraction of real estate investment has worsened, falling in 12.9% in the first eight months, according to government data.

The urban unemployment rate based on the survey in China in August reached 5.3%, which is more than 5.2% the previous month. The Statistics Office allocated the increase in the unemployment rate to the graduation season.

“We must be aware that there are many unstable and uncertain factors in (the external environment, and national economic development is still faced with multiple risks and challenges,” the statistics office said in an English press release.

“We must fully implement macro politicians, focus on employment maintenance, businesses, the market … stable expectations, deepen reform and openness and innovation, in order to promote stable and healthy economic development.”

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