China’s economy under strain in August as retail sales, industrial output miss forecasts
Weaker retail sales, investment and industry join slowing export growth, leaving analysts split on whether Beijing will step up policy support
Retail sales, a major gauge of consumption, rose by 3.4 per cent in August from a year earlier, missing the 3.82 per cent forecast in a poll by financial data provider Wind and down from July’s 3.7 per cent growth, data from the National Bureau of Statistics (NBS) showed on Monday.
Fu Linghui, spokesperson for the bureau, said the economy was “generally stable” in August, but cautioned that “many unstable and uncertain factors in the external environment” remained, with the economy “confronted with multiple risks and challenges”.
“We must fully implement macro policies, focus on keeping employment, businesses, market and expectations stable, and deepen reform and opening up and innovation, so as to foster steady and healthy economic development,” he added.
Industrial output grew by 5.2 per cent year on year in August, compared to 5.7 per cent growth in July, falling short of Wind’s 5.75 per cent estimate.
National fixed-asset investment rose by 0.5 per cent in the first eight months of 2025, missing Wind’s forecast of 1.29 per cent, following a 1.6 per cent gain in the first seven months of the year.