The Chinese economy lost acceleration for one month in a row, and new data showed a deeper slowdown than expected and a sharp retreat in investment.
The figures increase the ratio of Beijing to protect the growth for the target of Beijing, increasing the chances of taking extra steps to the stable activity of the authorities.
The National Statistics Bureau (NBS) said that industrial production, which includes mines and factories, increased by 5.2% in August compared to the previous year. This was weaker than 5.7% increase in July and was below the estimation of 5.6% in a Bloomberg survey. In addition, according to Cryptopolitan’s previous report, China’s consumer prices fell 0.4% in August.
In August, the NBS said, “The economy is often stable ,, but“ there are still numerous indecision and uncertainty with the external environment, and the economy is still facing many risks and difficulties.
Household demand softened. Retail sales increased by 3.4% annually in August, and in July, 3.8% earnings and 3.7% missed expectations. Fixed asset expenditures for January-August increased only 0.5%. The urban unemployment rate participating in the survey rose to 5.3%.
“This is confirming a sharp slowing on the investment side, especially in the second half of 2025, especially in the second half of 2025, C S, Senior Asian economist in Union Bancaire Privée in Hong Kong.
Economists are waiting for the economy to slow down during the remaining year
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With an earlier increase in exports, many analysts and investors are now waiting for the growth to shrink in the closing months of 2025. Chinese economy It expanded by 5.3% in the first half.
Any cooling scale in China, which will become the greatest driving force of global growth between 2025-2030, is important for a world economy caused by Trump’s tariffs.
However, the optimistic results in the first six months made sure that Chinese leaders could achieve the official goal of “about 5%” even if Momentum weakened later this year.
So far, the authorities have not shown a serious sign of preparing a large stimulus package as Trump’s exports continued in the middle of the 2nd trade war. Nevertheless, the pressures are evaluated by the numbers that created disappointment in recent weeks.
For the first time this year in August, a wide range of credit growth slowed down. Exports also came under the following estimates and the growth fell to 4.4% last month. According to the indexes and special surveys of the purchasing managers, the labor market signals also softened.
Another challenge is the government’s ur Involution, which aims to prevent excessive capacity and reduce excessive competition among firms. The rising push in early July may have contributed to the decrease in the output decreases of July from Steel to Copper products.
Although stock prices have climbed with the hope that measures will increase profitability, they also risk damping recruitment and home expenditures unless they are matched with the support of the stronger side. It remains uncertain how the campaign is played and makes it difficult to say when China can break the settled deflationist pressures.
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Housing prices in China fell in August
It contributes to the preservation difficulty. Official figures show that new home prices decreased by 0.3% in August in July and expanded a weak line that began in May 2023 in July 2023.
Compared to the previous year, prices fell 2.5% in August and decreased from 2.8% in July. The property regression began in 2021, and many relief tours, including a program to renew the mortgage rates and urban villages, have not yet made a permanent turn.
Continuous weakness in demand means that the housing market is dragging on growth. Price decreases were common. 57 out of 70 cities participating in the survey by NBS saw a monthly decrease and 65 -year decreases.
The prices of existing houses have also weakened. One-one Cities decreased by 3.5%compared to the previous year, prices in the level of two cities fell by 5.2%and the third cities fell by 6.0%.
Separate figures emphasized the collapse of the industry. The property investment decreased by 12.9% annually in January -August period, while real estate sales decreased by 4.7% according to the floor area.
