Chinese industrial production grew more than expected in August, as strong overseas demand for exports helped underpin local production despite a broader weakening in economic conditions.
Industrial production grew 5.2% year-on-year in August, government data showed on Tuesday. The print beat expectations of 4.8% and picked up from a 4.5% rise in the prior month.
The strong reading was fueled chiefly by robust overseas demand for Chinese goods, especially items like electronics components, batteries and networking equipment.
But industrial production was a sole bright spot in an otherwise dour Chinese economic picture. Fixed asset investment in the year to August slid 7.2%, more than expectations of 7.0%.
The print is a key gauge of private and public capital spending in China, and has remained squarely in negative territory since April.
Retail sales grew 0.4% year-on-year in August, less than expectations of 0.7% and slowing further from a 0.6% drop in the prior month. The print indicated that consumer spending in the world’s second-largest economy still remained weak despite multiple supportive measures from Beijing.
China’s unemployment rate unexpectedly rose to 5.3% from 5.2%.
The Chinese economy was hit with a storm of headwinds in the past year, with higher U.S. trade tariffs being a key hurdle. Chinese President Xi Jinping is set to hold a U.S. state visit later in September– a move that could help improve frigid ties between the world’s biggest economies.
Source: Investing.com
