China August Industrial Output, Retail Sales Slow Amid Economic Pressure

China's economy showed signs of weakening in August 2025, with industrial production growth slowing to 5.2% year-on-year, missing forecasts and marking the weakest pace since August 2024. Retail sales increased by just 3.4%, falling short of expectations and marking the slowest pace since late 2024, reflecting weak domestic consumption. Fixed-asset investment rose only 0.5%, significantly below predictions, while property investment contracted sharply by 12.9%, continuing a prolonged slump that hampers recovery efforts. The decline in manufacturing output and subdued consumer demand are attributed to ongoing U.S. trade tensions, cooling inflation, and a fragile property sector, despite Beijing's stimulus measures. Analysts and government officials highlight the need for further policy support, including potential interest rate cuts and reforms, to stabilize growth and employment amid multiple economic risks. Without stronger stimulus and structural reforms, China's growth momentum is expected to remain under pressure through the rest of the year.