China’s factory output, retail sales slip in August
China’s factory output and retail sales touched one-year lows in August. The decline was attributed to the country’s high coronavirus cases and supply constraints.
The National Bureau of Statistics showed a 5.3% increase in industrial production in August from a year earlier. This reading was below July’s 6.4% gain and the lowest rate since July 2020. Output growth failed to reach a forecast of 5.8% growth.
Sales climbed a measly 2.5% due to poor consumer spending, sharply lower than a predicted 7.0% rise.
Louis Kuijs, Head of Asia Economics at Oxford Economics, said the lingering effects of the virus and weak investment caused a slow economic growth last month.
The country has been recovering well from the impact of the COVID-19 pandemic, but supply chain bottlenecks, semiconductor shortages, curbs on high-polluting industries, and a crackdown on property investment hampered its momentum.