China Retail Sales, Industrial Output Grow Below Expectations August

China's retail sales growth slowed to 3.4% in August 2025, missing analyst expectations of 3.8% to 3.9% and dropping from 3.7% in July, reflecting softer domestic demand amid a challenging global economic environment. Industrial output also decelerated to 5.2%, its weakest pace since August 2024, pressured by US trade tariffs and weak overseas demand, while fixed-asset investment barely grew at 0.5%, with real estate investment contracting by 12.9%. Despite slower growth, sectors such as automobiles, catering, and online retail showed resilience, supported by ongoing domestic consumption and China's e-commerce strength. The Chinese government acknowledged multiple economic risks and emphasized the need for macroeconomic policies focusing on employment, market stability, and innovation to foster steady development. Beijing's earlier stimulus measures have begun to lose effectiveness, prompting expectations for additional support to counteract weakening private spending and persistent challenges in manufacturing and property markets. Overall, the data indicate a cautious economic recovery with risks from both internal weaknesses and external pressures.