China's industrial output, retail sales growth slow in August

China’s economy showed fresh signs of strain in August as both industrial production and retail sales growth weakened, missing expectations and underscoring persistent challenges for the world’s second-largest economy.

According to official data released Monday by the National Bureau of Statistics (NBS), industrial output grew 5.2% year-on-year — the slowest pace since August 2024 and below the 5.6% forecast in a Bloomberg survey. Retail sales also disappointed, rising just 3.4% compared with last year, the weakest since November and shy of the 3.8% forecast.

The slowdown comes as Beijing struggles to revitalize its post-pandemic recovery. Consumer confidence has slumped, dampening spending, while the country’s property sector remains weighed down by a protracted debt crisis. New home prices in August dropped in 65 out of 70 major cities, NBS figures showed.

“There is still much instability and uncertainty in the external environment, and (China’s) economic performance still faces numerous risks and challenges,” said NBS chief economist Fu Linghui at a press briefing.

Trade headwinds also continue to pressure growth. Beijing and Washington have been locked in escalating tariff battles in 2025, further complicating China’s recovery. On Sunday, officials from both sides began the latest round of trade talks in Madrid, where disputes over tariffs and broader economic ties remain high on the agenda.

Beijing has set a growth target of around 5% for this year, but the latest figures suggest achieving it could prove increasingly difficult.