People look at their phones while waiting to cross an intersection in the rain at the Taikoo Li Sanlitun shopping center in Beijing, July, 30, 2024.Vincent Thian/The Associated Press
China’s economy softened in August, extending a slowdown in industrial activity and real estate prices as Beijing faces pressure to ramp up spending to stimulate demand.
Data published by the National Bureau of Statistics Saturday showed weakening activity across industrial production, retail sales and real estate this month compared to July.
“We should be aware that the adverse impacts arising from the changes in the external environment are increasing,” said Liu Aihua, the bureau’s chief economist in a news conference.
Liu said that demand remained insufficient at home, and the sustained economic recovery still confronts multiple difficulties and challenges.
China has been grappling with a lagging economy post-COVID, with weak consumer demand, persistent deflationary pressures and a contraction in factory activity.
Chinese leaders have ramped up investment in manufacturing to rev up an economy that stalled during the pandemic and is still growing slower than hoped.
Beijing also has to deal with increasing pressure to implement large-scale stimulus measures to boost economic growth.
While industrial production rose by 4.5 per cent in August compared to a year ago, it declined from July’s 5.1% growth, according to the bureau’s data released.
Retail sales grew 2.1 per cent from the same time last year, slower than the 2.7 per cent increase last month.
Fixed asset investment rose by 3.4 per cent from January to August, down from 3.6 per cent in the first seven months.
Meanwhile, investment in real estate declined by 10.2 per cent from January to August, compared to last year.
The figures released Saturday come after trade data for August saw imports grow just 0.5 per cent compared to a year ago.
The consumer price index rose 0.6 per cent in August, missing forecasts according to data released Monday. Officials attributed the higher CPI to an increase in food prices due to bad weather.
But the core CPI, which excludes food and energy prices, rose by just 0.3 per cent in August, the slowest in over three years.