In August, China's retail sales grew by only 0.4% year-over-year, a decrease from 0.6% in July and below the expected 0.8% growth, indicating a slowdown in consumer spending. Meanwhile, industrial output increased by 5.2%, surpassing the 4.8% forecast and up from 4.5% in July.
However, urban fixed-asset investment fell by 7.2% in the first eight months of the year, worsening from a 6.7% decline previously. The urban unemployment rate slightly rose to 5.3%. The National Bureau of Statistics (NBS) highlighted a significant imbalance between supply and demand, urging for macro-policy adjustments to stimulate domestic demand and promote industrial upgrades.
Despite a 4.3% growth rate in the second quarter, which is the slowest in over three years, policymakers have been cautious about implementing aggressive stimulus measures.
While exports, particularly in semiconductors and tech hardware, have shown resilience, credit expansion in August fell short of expectations, with new bank loans totaling only 60 billion yuan, far below the anticipated 400 billion yuan.
Economists suggest that September may present a critical opportunity for policy adjustments to boost business confidence ahead of the Golden Week holidays in October