Key facts
- China's industrial output grew 5.2% year-on-year in August, exceeding expectations.
- Retail sales growth slowed to 3.4% in August, missing forecasts.
- Fixed-asset investment declined 7.2% in the first eight months of the year.
- New export orders continued to contract in August.
- New home prices dropped in 65 out of 70 major Chinese cities in August.
China's economy showed signs of strain in August as industrial output growth quickened to 5.2% year-on-year, exceeding forecasts, while retail sales growth slowed to 3.4%, missing expectations. The National Bureau of Statistics data indicated that new export orders continued to contract, and new home prices dropped in 65 out of 70 major cities. Fixed-asset investment declined 7.2% in the first eight months of the year. Analysts had expected industrial output to rise 5.6% and retail sales to increase 3.8%. The slowdown underscores persistent challenges for the world's second-largest economy, which faces weak domestic demand and external risks, including ongoing trade disputes with the United States. Beijing has set an annual growth target of around 5% for the year, but achieving it may prove difficult given the current economic conditions.