Chinese factory output shows resilience to rise 5.3pc
China's value-added industrial output increased by 5.3 percent year on year in the first eight months of 2026. Retail sales of goods and services, a major indicator of the country's consumption strength, increased by 2.5 percent, fixed-asset investment dropped 7.2 percent and the surveyed urban unemployment rate averaged an unchanged 5.2 percent. For the month of August, output grew 5.2 percent…
China's industrial output, excluding raw materials, rose by 5.3% year-over-year in the first eight months of 2026, according to the National Bureau of Statistics. Retail sales of goods and services grew by 2.5%, while fixed-asset investment declined by 7.2%. Urban unemployment remained steady at 5.2%. August saw a 5.2% increase, surpassing July's 4.5% growth and expectations of a 4.8% rise.
Retail sales, however, expanded by only 0.4%, down from July's 0.6% increase and below the anticipated 0.8%. This disparity highlights the contrast between robust production and exports, and fragile household consumption and investment. Extreme weather, including four typhoons, posed a challenge during August. The government has responded with increased government bond issuance and lower loan interest rates for small businesses and consumers, while the central bank pledged further policy support.
Officials believe that enhancing residents' spending ability and willingness, along with improving the supply of high-quality goods, will bolster the economy. Analysts at ANZ predict that September could be a crucial time to boost business confidence before the upcoming Golden Week holidays.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
