China’s economy delivered a mixed set of figures for August, according to the National Bureau of Statistics (NBS). Industrial production and services showed robust gains, but consumer spending and investment in real estate continued to weigh on overall momentum.
Industrial output rose 5.2 percent year-on-year, with equipment manufacturing up 8.1 percent and high-tech manufacturing surging 9.3 percent. Production of 3D printing devices, new energy vehicles and industrial robots grew by 40.4, 22.7 and 14.4 percent respectively, underlining Beijing’s push into advanced technologies. The manufacturing PMI inched up to 49.4, while business expectations improved to 53.7, hinting at a more optimistic outlook among firms.
The service sector also gained pace, with output up 5.6 percent year-on-year. Information technology services and finance were standout performers, growing 12.1 and 9.2 percent respectively. The business activity index for services rose to 50.5, signaling expansion, while expectations remained buoyant at 57.
Household consumption, however, looked more fragile. Retail sales increased just 3.4 percent compared with a year earlier, hitting 3.97 trillion yuan. Urban sales grew 3.2 percent, while rural areas rose 4.6 percent. Catering sales expanded by a modest 2.1 percent, while spending on discretionary goods such as furniture and household appliances benefited from government trade-in subsidies. Online retail sales remained a bright spot, up 9.6 percent in the first eight months of the year.
Investment data also highlighted structural strains. Overall fixed-asset investment rose only 0.5 percent in the January–August period. Real estate investment dropped 12.9 percent, dragging on the economy, while manufacturing investment grew 5.1 percent. High-tech industries, including aerospace and information services, recorded double-digit gains, reflecting policy support for innovation.
Trade provided some relief, with exports up 4.8 percent and imports up 1.7 percent in August. Exports of mechanical and electrical products rose 9.2 percent, now accounting for more than 60 percent of China’s total shipments.
Inflation remained subdued. Consumer prices fell 0.4 percent year-on-year in August, though core inflation edged up to 0.9 percent. Producer prices declined 2.9 percent, narrowing from the previous month’s pace of contraction.
Unemployment was broadly stable, with the surveyed jobless rate at 5.3 percent, though youth and migrant worker employment remain under pressure.
Overall, the August data suggest that while Beijing’s policy support is helping stabilize industrial output and trade, household consumption and the property sector continue to drag on growth. The government has signaled it will maintain stimulus and reforms to keep growth on track amid persistent domestic and external challenges.
Source: National Bureau of Statistics of China, National Economy Maintained Recovery Momentum in August, 15 Sept 2025
