August saw drops in retail sales, real estate prices, and industrial production, all of which were indicators of continued weakness in China’s economy.
In August, China’s economy contracted, prolonging a decline in both industrial production and property values as Beijing is under pressure to increase expenditure in order to boost demand.
The National Bureau of Statistics released data on Saturday that indicated lower activity this month compared to July in the areas of real estate, retail sales, and industrial production.
The top economist of the bureau, Liu Aihua, stated during a press conference that “we should be aware that the adverse impacts arising from the changes in the external environment are increasing.”
Liu stated that there was still not enough demand at home and that there were still many obstacles to overcome before there would be a long-term economic recovery.
After COVID, China’s economy has been struggling with low consumer demand, ongoing deflationary pressures, and a decline in industry activity.
Chinese authorities have increased manufacturing spending in an attempt to stimulate a stagnant economy that is still expanding more slowly than anticipated during the pandemic.
Beijing must also contend with mounting demand to carry out significant stimulus programs in order to accelerate economic expansion.
According to figures issued by the bureau, industrial production increased 4.5% in August over the same month last year, but it decreased from 5.1% growth in July.
Retail sales increased 2.1% year over year, which was less than the 2.7% gain seen last month.
From January to August, fixed asset investment increased by 3.4%, compared to 3.6% during the preceding seven months.
In the meantime, compared to the previous year, real estate investment fell by 10.2% between January and August.
The report revealed on Saturday follows trade data from August, which showed that imports increased by just 0.5% over the previous year.
According to data released on Monday, the consumer price index increased by 0.6% in August, falling short of projections. Officials blamed the increase in food prices brought on by the unfavorable weather for the higher CPI.
However, the core CPI—which does not include the cost of food or energy—rose by just 0.3% in August, the least amount in more than three years.
