China's August Retail Sales Rise 0.4% as Investment Slump Deepens to 7.2%

3 articles · Updated · CNBC · Sep 15

Retail sales rose just 0.4% in August, slowing from 0.6% in July and missing a 0.8% forecast, while fixed-asset investment for January-August fell 7.2%, worse than the prior 6.7% decline.
Industrial output offered a partial offset, accelerating to 5.2% from 4.5% and beating a 4.8% estimate, but the statistics bureau warned of an acute domestic imbalance between strong supply and weak demand.
Unemployment edged up to 5.3% from 5.2%, and August credit data stayed weak: new bank loans totaled 60 billion yuan versus roughly 400 billion yuan expected, with outstanding loan growth slowing to a record-low 4.9%.
Beijing has increased bond issuance and loan-interest subsidies while the central bank promised more support, yet analysts say broader fiscal easing may still be needed as third-quarter growth is seen around 4.3%, below the annual 4.5%-5% target range.