China’s economy has slowed down. Both factory production and retail sales were lower than expectations, which has increased the pressure on the Chinese government to take new steps to support the economy. The decline in weak consumption and property business is affecting growth. According to data from the National Bureau of Statistics (NBS), industrial production in August increased by 5.2% compared to the previous year. This figure was 5.7% in July. It was less than 5.7% expected in a survey of Reuters. This was the slowest speed since August last year. According to Reuters, China experienced its hottest summer since 1961. The longest rainy season was also here, which affected the production.
Consumer spending decline
Consumer expenditure in China has declined further. Retail sales increased by 3.4% in August. In July it was 3.7%, while estimates were 3.9%. Due to the decline in income from property and sluggishness in the employment market, people are taking care in spending. Therefore, the growth of retail sales was the fastest since November. People have reduced the expenditure due to the falling property prices. Professional confidence has also fallen and employment market has also weakened.
Government has warned
The Chinese government has warned about the risks to come. MBS said that the economy remained stable in August in August. But he also admitted that many unstable and uncertain factors still exist. At the same time, according to the South China Morning Post, spokesperson Fu Linghui has warned that the economy is facing many risks and challenges. He said that policy makers should fully implement comprehensive policies. In addition, they should focus on stabilizing jobs, businesses, markets and expectations.
What was unemployment rate?
The Chinese government statistics has also revealed that the urban unemployment rate increased to 5.3% in August, which was 5.2% in July. The recession in the property business has become deeper. According to government statistics, the prices of new houses declined by 0.3% monthly and 2.5% year-on-year. According to the South China Morning Post, property investment has declined by 12.9% from January to August as compared to the same period last year. The decline in the first seven months was 12%. In the first eight months of 2025, the sales of new homes will also fall by 4.7%.
