China's National Bureau of Statistics released economic data for August on the 15th. Total retail sales of consumer goods grew 3.4% year-on-year in August, down from 3.7% in July and a new low for the year. According to Caixin Commentary, summer travel drove a rebound in cultural and tourism consumption. Despite the gradual resumption of the "old for new" policy in August, the year-on-year growth rate of retail sales continued to decline, dragging down overall retail sales growth and falling short of market expectations.
Caixin reported that the value added of industrial enterprises above designated size increased by 5.2% year-on-year in August, a 0.5 percentage point drop from July. Seasonally adjusted, the month-on-month increase in industrial value added was 0.37%, slightly lower than July's growth rate by 0.01 percentage point, indicating a marginal slowdown in industrial production growth. Industrial production performance fell short of market expectations.
The Financial Times reported that as the government is tackling industrial overcapacity, it has turned to relying on domestic consumption to support the economy. The latest data showed that both indicators recorded their slowest growth since November 2024.
Fu Linghui, spokesperson for the National Bureau of Statistics of China and director of the Department of Comprehensive Statistics of the National Economy, stated at a press conference held by the State Council Information Office that 70 external environment is complex and severe, with numerous unstable and uncertain factors. The domestic market is characterized by strong supply and weak demand, and some businesses are facing operational difficulties. In the next phase, we must strengthen macroeconomic policy adjustments to effectively unleash the 70 of domestic demand.
Calculations by The Wall Street Journal based on data from China's National Bureau of Statistics show that average house prices in 70 large and medium-sized cities in China fell 3.0% year-on-year in August, compared with a drop of 3.4% in July.
Economists say adverse summer weather continues to weigh on factory activity, while Beijing’s recent efforts to curb overcapacity in key industries are also weighing on industrial production. A years-long property market slump continues to curb investment.
In addition, in August, the national urban surveyed unemployment rate was 5.3%, up 0.1 percentage point from the previous month.
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