<figure id="attachment_2917650" aria-describedby="caption-attachment-2917650" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-2917650" src="https://media.freemalaysiatoday.com/wp-content/uploads/2024/11/525b1ebf-china-factory-ap-resize-201124-1.webp" alt="china factory" width="1600" height="1000" /><figcaption id="caption-attachment-2917650" class="wp-caption-text">China’s industrial output grew 5.2% year-on-year in August, its slowest increase since the same month a year earlier. (AP pic)</figcaption></figure>
BEIJING: China&#8217;s economy showed further signs of weakness last month, with key data Monday revealing factory output and consumption rising at their weakest pace for around a year.
Beijing has struggled to fully reignite the world&#8217;s number two economy since the end of the Covid-19 pandemic, with the once-booming property sector mired in a debt crisis and exports facing mounting headwinds.
The trends have contributed to a slump in consumer confidence, dragging on spending and threatening leaders&#8217; official growth target for this year of around 5%.
Industrial production edged up 5.2% year-on-year in August, according to data from the national bureau of statistics (NBS), the slowest pace since the same month last year.
The figure missed the 5.6% growth forecast in a Bloomberg survey of economists.
The NBS also said retail sales climbed 3.4% last month – the slowest since November and falling short of the 3.8% estimated in the Bloomberg survey.
&#8220;The activity data point to a further loss of momentum last month,&#8221; Zichun Huang, China economist at Capital Economics, wrote in a note.
&#8220;While some of this reflects temporary weather-related disruptions, underlying growth is clearly sliding, raising pressure on policymakers to step in with additional support,&#8221; she said.
New residential property prices fell year-on-year during August in 65 out of 70 cities surveyed by the NBS, data also showed.
Urban unemployment ticked up to 5.3% last month, a slight increase from 5.2% in July, according to NBS data.
&#8220;In the domestic market supply is strong, demand is weak and some enterprises are facing operational difficulties,&#8221; NBS chief economist Fu Linghui told a news conference Monday.
Fu added that &#8220;there is still much instability and uncertainty in the external environment, and (China&#8217;s) economic performance still faces numerous risks and challenges&#8221;.
One of the main challenges facing the economy is the strained relationship between Beijing and Washington as disputes over technology and geopolitics mount.
China-US trade tensions have been on a rollercoaster ride in 2025, with both sides slapping escalating tariffs on each other.
Officials from the two countries on Sunday kicked off a fresh round of talks in Madrid, where they are set to thrash out disputes over hefty US tariffs and other key issues.
Tit-for-tat levies reached triple digits on both sides at one point this year, snarling supply chains.
Leaders have since reached an agreement to de-escalate tensions, temporarily lowering the duties to 30% on the US side and 10% on China&#8217;s part.
They agreed last month to extend their pause for another 90 days until Nov 10.

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