China’s Economic Slowdown in August Raises Stimulus Expectations

China's economic momentum weakened in August, with key indicators falling short of expectations. Industrial output growth slowed to 5.2% year-over-year, down from July's 5.7% and below Bloomberg's median forecast of 5.6%. Consumer prices declined 0.4%, while retail sales growth softened to 3.4% from 3.7% in July.

The National Bureau of Statistics acknowledged the economy's general stability but warned of external uncertainties and persistent challenges. Fixed-asset investment growth remained sluggish at 0.5% for January-August, and the urban jobless rate ticked up to 5.3%.

Analysts anticipate Beijing will implement additional support measures to maintain growth targets. 'This confirms a sharp slowdown in the second half of 2025, especially on the investment side,' noted Carlos Casanova of Union Bancaire Privée. With export momentum fading, economists expect further deceleration in coming months following 5.3% growth in the first half.