The disappointing data divided economists about whether economic leaders would need to introduce more short -term aid measures to achieve their annual growth objective of “around 5%”, with manufacturers waiting for more clarity on a commercial agreement with the United States and domestic demand stopped by a staggering labor market and the real estate crisis.
The industrial production grew 5.2% year -on -yearas the data of the National Statistics Office showed on Monday, The lowest reading since August 2024 and weaker than the 5.7% increase in July. He also breached the forecasts of an increase of 5.7% according to a Reuters survey.
Retail sales, an indicator of consumption, grew 3.4% in August, the slowest pace since November 2024, and cooled with respect to the 3.7% increase in the previous month. They did not reach the expected 3.9%.
“The strong start of the year continues to maintain this year’s growth goals, but as last year at this time, a greater stimulus may be necessary to guarantee a good end of the year,” said Lynn Song, chief economist of ING for the Grand China region.
“Although it is too early to evaluate the impact of subsidies to consumption loans that will enter into force in September, it is likely that greater support of monetary policies remains, given the generalized slowdown. We continue to see a high possibility of another cut of types of 10 basic points and 50 basic points of the coefficient of mandatory reserves in the coming weeks,” he added.
The investment in fixed assets also grew at a rate lower than the planned 0.5% year -on -year in the first eight months, compared to 1.6% registered between January and July, which represents its worst result after the pandemic.
The authorities rely on manufacturers to find new markets that compensate for the unpredictable commercial policy of the president of the United States, Donald Trump, and the weak consumer expense.
