China’s economy under further pressure in August, as analysts expect rebound next quarter
China's economic data for August shows continued pressure from weak domestic demand and a property sector downturn. Analysts remain cautiously optimistic, predicting a potential rebound in the fourth quarter driven by anticipated state intervention and fiscal spending.
Why it matters
Understanding China's economic trajectory is essential for global investors and policymakers monitoring the health of the international economy.
China’s economy came under further pressure in August, as sluggish investment and consumption highlighted persistently weak domestic demand, although analysts expect a rebound in the fourth quarter as state intervention begins to take effect.
Retail sales, a major gauge of consumer spending, grew last month by 0.4 per cent year on year, according to data released by the National Bureau of Statistics (NBS) on Tuesday.
The reading was lower than a 0.73 per cent rise forecast by economists surveyed by Chinese financial data provider Wind, and was down from the 0.6 per cent increase in July.
Overall fixed-asset investment – covering major areas such as infrastructure, manufacturing and property construction – fell by 7.2 per cent in the January-August period, year on year, largely in line with a Wind forecast of a 7.19 per cent decline.
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