BEIJING, China – China’s economy showed signs of weakening in August, signaling a continued slowdown in industrial activity and real estate prices. As Beijing faces mounting pressure to stimulate demand, data released by the National Bureau of Statistics highlighted a decline in industrial production, retail sales, and real estate compared to the previous month.
Speaking at a press conference, Liu Aihua, the bureau’s chief economist, emphasized the challenges facing China’s economic recovery. He noted that domestic demand remained insufficient and that the economy still grapples with various difficulties. The country has been struggling with a lagging economy post-COVID, characterized by weak consumer demand, deflationary pressures, and a decrease in factory activity. To counter these challenges, the government has increased investment in manufacturing to jumpstart economic growth.
In August, industrial production saw a 4.5% increase compared to the same time last year, a decrease from July’s growth rate of 5.1%. Retail sales also grew by 2.1% year-on-year, slower than July’s 2.7% growth. Additionally, fixed asset investment rose by 3.4% from January to August, lower than the 3.6% increase recorded in the first seven months of the year. Real estate investment, however, saw a decline of 10.2% during the same period compared to the previous year.
Furthermore, data released indicated a 0.6% rise in the consumer price index (CPI) in August, falling short of expectations. The increase was attributed to higher food prices due to adverse weather conditions. However, the core CPI, which excludes food and energy prices, only rose by 0.3% in August – the slowest growth in over three years.
These economic indicators point towards a challenging road ahead for China’s economy, with pressure mounting on Beijing to implement significant stimulus measures to boost growth and address the ongoing slowdown across various sectors.