China Faces Deepening Slowdown as Retail Sales and Industrial Growth Fall Short

China’s economic slowdown intensified in August, with both retail sales and industrial output falling short of market expectations, adding pressure on policymakers to roll out stronger support measures.

Official data showed industrial output rising 5.2% year-on-year, down from July’s 5.7% and below forecasts of 5.7%. Retail sales grew just 3.4%, missing expectations of 3.9% and marking the weakest pace since November 2024.

Fixed-asset investment between January and August rose only 0.5%, signaling a sharp loss of momentum, while new home prices slipped by around 0.3% month-on-month, underscoring persistent weakness in the property sector. The national jobless rate also edged up to 5.3%.

Economists point to sluggish domestic demand, falling property values, and weakening export orders as key drags on the economy. Extreme weather disruptions and trade uncertainties have also weighed on manufacturing and consumer sentiment.

The disappointing figures heighten concerns that China could struggle to meet its “around 5%” growth target for 2025. Analysts expect Beijing to step up monetary easing, fiscal stimulus, and targeted measures to stabilize the property market and revive consumer spending in the months ahead.