Chinese industrial production, retail sales underwhelm in August
2024.09.15 21:45
Investing.com– Chinese industrial production and retail sales grew less than expected in August, while unemployment rose amid growing signs that economic conditions in the country were deteriorating.
rose 4.5% year-on-year in August, government data showed over the weekend. The reading was lower than expectations for a rise of 4.5%, and weakened from the 5.1% rise seen in July.
The reading indicated that factory activity- which has been among the few bright spots in the Chinese economy- was under pressure from sluggish local demand and increased trade restrictions imposed by the West.
The U.S. and its allies had imposed steep trade tariffs on imports of Chinese electric vehicles earlier in the year. U.S. officials were also seen preparing more restrictions.
grew 2.1% in August, missing expectations of 2.5% and slowing from the 2.7% seen in the prior month.
The reading showed a further deterioration in local demand, which has been the key driver of a persistent disinflationary trend in China over the past few years.
China’s unexpectedly rose to 5.3% from 5.2%. also grew less than expected in August.
The barrage of weak economic readings were preceded by data showing a sustained decline in China’s . An extended slump in the property market has also been a major driver of China’s economic downturn.
Analysts at ANZ said the sluggish readings will likely prompt more promises of stimulus measures from Chinese officials.
But they said the weak data still did not justify a downgrade to ANZ’s gross domestic product outlook- which the bank expects to remain around 4.7% in the third quarter.
