China’s retail sales and industrial production for August were disappointing, according to data released by the National Bureau of Statistics on Saturday. That readied by the national statistical office are slower than analysts had expected concerns over the economic recovery.
Retail sales increased by 2.1% from last year, which is also slightly lower than economists had projected, according to a Reuters survey at 2.5%. It was also lesser compared to a 2.7% growth rate July had registered. Sales of physical goods through the Internet increased only by 1% on the same basis.
Industrial production improved 4.5% in August short of the 4.8% growth rate projected. This figure also reflected a slowdown from the 5.1% growth reported for July. According to Darius Tang, an associate director at Fitch Bohua, structural imbalance accounts for this due to stronger supply but weakened demand within the Chinese economy. He believes that the Chinese government is likely to roll out steady measures of stimulus for consumption as well as the real estate sector during the fourth quarter.
Fixed asset investment progress was a bit shy of expectation at 3.4 percent between January and August. The urban jobless rate has been seen to rise to 5.3 percent in August from 5.2 percent in July. According to national statistics bureau spokesperson Liu Aihua, this increase is part and parcel of seasonal factors tied to graduations, and it will be a more uphill battle before employment levels stabilize.
Infrastructure and manufacturing investment was slowing in the rate relative to the prior month, while real estate investment continued to decrease by 10.2%, in line with July. The level of youth unemployment for those aged 16-24 not in school was at 17.1% of the total this July.
The Bureau warned that mounting external forces affect the economy and that a sustained recovery still faces significant obstacles. Against this economic backdrop, recent statistics have shown lingering weakness in consumption, as imports advanced just 0.5% and the consumer price index rose 0.6% in August, both lower than forecast by analysts.
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