China's Economic Growth Falters Amidst Industrial Slowdown and Weak Retail Sales

China's economic growth hit a five-month low in August, with industrial output, retail sales, and new home prices all showing weakening trends. The data, echoing previous reports of soft bank lending, underscores the sluggish momentum of China's economy and bolsters the case for aggressive stimulus measures to meet annual targets.

China's economic growth has hit a five-month low in August according to official data, with industrial output, retail sales, and new home prices all weakening. The National Bureau of Statistics reports that industrial output expanded by just 4.5% year-on-year, marking the slowest growth since March and falling short of analysts' expectations.

Retail sales rose only 2.1% despite the peak summer travel season, underlining weak domestic demand. Analysts had expected a 2.5% rise. Moreover, China's oil refinery output and crude steel output also fell, sparking concerns about overall economic activity. These factors have already led global brokerages to downgrade their 2024 growth forecasts for China.

Amid warnings from experts, Chinese authorities are likely to introduce large-scale stimulus measures soon. President Xi Jinping has urged for efforts to achieve the country's annual economic and social development goals, while Premier Li Qiang highlighted the focus on stimulating consumption to help revive the sluggish economy.

(With inputs from agencies.)