September 16, 2025

China’s economic engine hit some bumps in August! New data from the National Bureau of Statistics revealed that factory output grew by just 5.2% year-on-year, slower than July’s 5.7% and missing the hoped-for 5.7% growth. Retail sales, which show how much people are buying, rose only 3.4%, down from July’s 3.7% and below the 3.9% forecast. What’s going on? Weak consumption, a struggling property market, and global trade worries are putting a big drag on growth. Exports, once a shining light, showed the slowest surge in six months, thanks to uncertainty over US-China trade talks and President Donald Trump's unpredictable tariff policies. Chinese makers hoped to find new markets, but it’s been tough. To make things worse, the property sector is sinking deeper – new home prices fell 0.3% in August from July and are down 2.5% compared to last year. This is a big headache because many families feel poorer and are spending less, while businesses hesitate, slowing down hiring. Even the weather played a role with the hottest summer since 1961 and the longest rainy season in decades making factory work harder. Investment in fixed assets also slowed, growing only 0.5% in the first eight months, far below expectations. But Beijing isn’t standing still! Zheng Shanjie, leader of China’s state planner, said the government will use all its fiscal and monetary powers and speed up new financial tools to hit this year’s growth goal of around 5%. He added there will be regular policy studies to keep things on track. With so many challenges, China’s economy is at a crucial turning point. Will these fresh moves fire up growth again? The world is watching closely!

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Tags: China economy, Factory output, Retail sales, Economic stimulus, Property market, Export orders,