Pictured here is a shopping mall in Hangzhou, China, on September 9, 2024.
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BEIJING – China’s retail sales, industrial production and urban investment all grew slower than expected in August, National Bureau of Statistics data released Saturday showed.
Retail sales rose 2.1% in August from a year ago, missing 2.5% growth expected by economists polled by Reuters. That was also slower than the 2.7% increase in July.
Online sales of physical goods rose just under 1% in August from a year ago, according to CNBC calculations based on official data.
Industrial production rose 4.5% in August from a year ago, lagging Reuters’ 4.8% growth forecast. That also marked a slowdown from a 5.1% increase in July.
Despite the miss, industrial production still grew faster than retail sales, “reflecting the structural imbalance in the Chinese economy, with stronger supply and weaker demand,” said Darius Tang, associate director of corporates at Fitch Bohua.
The company expects the Chinese government will likely announce more, gradual stimulus measures in the fourth quarter to support consumption and the real estate sector, Tang said.
Fixed asset investment rose 3.4% from January to August, slower than expectations for 3.5% growth.
The urban unemployment rate was 5.3% in August, up from 5.2% in July.
In fixed asset investment, infrastructure and manufacturing slowed year-on-year growth in August compared to July. Real estate investment fell 10.2% through August, the same pace as in July.
National Bureau of Statistics spokesman Liu Aihua attributed the increase in unemployment to the impact of the graduation season. But she said stabilizing employment requires more work.
This year, the statistics office released the unemployment rate for people aged 16 to 24 who are not in school a few days after the broader unemployment figures. Youth unemployment in July was 17.1%.
“We must be aware that the negative consequences resulting from the changes in the external environment are increasing,” the agency said in an English-language statement. A “sustainable economic recovery still faces multiple difficulties and challenges.”
This weekend, Saturday is a working day in China in exchange for a public holiday on Monday. The country celebrates the Mid-Autumn Festival, also known as the Mooncake Festival, from Sunday to Tuesday. The next and last major holiday in China falls in early October this year.
Growth in the world’s second-largest economy has slowed after a disappointing recovery from Covid-19 lockdowns. Policymakers have not yet announced large-scale stimulus measures, while recognizing that domestic demand is insufficient.
Other data released over the past week underlines continued weakness in consumption.
Imports rose just 0.5% in August from a year ago, customs data showed, falling short of expectations. Exports increased by 8.7%, exceeding expectations.
Beijing’s consumer price index for August also disappointed analysts’ expectations, rising 0.6% from a year ago.