August was marked by extremely high temperatures in parts of China, leading to temporary power rationing in some regions. In the photo on August 24, 2022, the skyline of the central city of Chongqing is seen with lights partially turned off to conserve energy during the heat wave.
vcg | China Visual Group | fake images
BEIJING — China on Friday reported data showing a pick-up in growth in August from the previous month. The data also exceeded expectations across the board.
Retail sales grew 5.4% in August from a year earlier, beating Reuters’ forecast for 3.5% growth. Catering sales rose 8.4% in August from a year earlier, while auto and food sales also grew significantly. That helped retail sales for the year through August grow 0.5% from a year earlier. Cosmetics and home furnishings were among the few categories that showed a sales decline in August from a year earlier.
Online sales of physical goods rose 12.8% in August from a year earlier, faster than the 10.1% growth in July, according to CNBC calculations of official data.
Industrial production rose 4.2% in August from a year earlier, beating the 3.8% rise estimated in a Reuters survey of analysts.
Fixed asset investment for the first eight months of the year rose 5.8%, above the 5.5% increase forecast by Reuters. Investment in manufacturing was the one that rebounded the most, 10% more than in the same period of the previous year. Infrastructure investment grew at a slower pace than in July so far this year.
Real estate investment for the year declined further from August, down 7.4% from the same period a year earlier versus a 5.2% decline reported for the year from July.
The unemployment rate for young people aged 16 to 24 fell to 18.7% in August. It remained well above the overall unemployment rate in cities, which was 5.3% in August, down slightly from the previous month.
“In general terms, the national economy withstood the impacts of multiple unexpected factors and maintained the momentum of recovery and growth with important indicators showing positive changes,” the National Statistics Office said in a press release. “However, we must be aware that the international environment remains complicated and severe and that the basis for domestic economic recovery is not solid.”
China’s economy has remained under pressure due in part to Covid controls, which in particular it stranded tens of thousands of tourists on the tropical island of Hainan in August.
The summer month was also marked by extremely high temperatures in some parts of China, causing temporary power rationing in some regions.
Export growth slowed to 7.1% year-on-year in August, indicating that the engine of Chinese growth may be slowing as global demand falters. Domestic demand remained weak, with imports up just 0.3% from a year earlier.
China’s consumer price index fell from two-year highs to show a Year-on-year increase of 2.5% in August. But excluding food and energy, the index only rose 0.8%, again reflecting lackluster demand.
The massive real estate crash It has also weighed on demand. A few weeks earlier, the Chinese developer country garden he described that the real estate market has “fallen rapidly into a severe depression”.
This is breaking news. Please check for updates.