China's investments decline and retail sales slow down in August
In August, the decline in investments in China deepened while retail sales growth slowed, and industrial production exceeded expectations.
In August, the decline in investments in China deepened, the growth rate of retail sales slowed down, and industrial production showed an increase above expectations. Authorities pointed out an imbalance between supply and demand in the economy.
Slowdown in Retail Sales
According to data released by the National Bureau of Statistics of China on Tuesday, retail sales recorded an annual increase of 0.4 percent in August. This growth showed a slowdown from the 0.6 percent rate in July and also fell below economists' expectation of 0.8 percent.
Above-Expectation Increase in Industrial Production
Industrial production posted an annual increase of 5.2 percent in August. The production data surpassed the 4.5 percent increase in July and left behind economists' expectation of 4.8 percent.
Decline in Investments Deepened
In the first eight months of the year, urban fixed asset investments, covering real estate and infrastructure investments, declined by 7.2 percent year-on-year. With this data, the 6.7 percent drop in the January-July period deepened further.
Unemployment Rate Rose
The surveyed urban unemployment rate rose from 5.2 percent to 5.3 percent in August.
Warning on Supply and Demand Imbalance
The National Bureau of Statistics stated that the negative impact of the external environment has strengthened, emphasizing that there is a serious imbalance between strong supply and weak demand in the Chinese economy. The institution called for the stimulation of domestic demand.