In August, China’s industrial output surged 5.2% year-over-year, beating economists’ forecasts, while retail sales grew by only 0.4%, falling short of the 0.8% consensus estimate. Fixed-asset investment declined 7.2% over the January-to-August period, further darkening the economic picture. The property sector, which represents the bulk of Chinese household wealth, saw a nearly 20% year-over-year drop across the first eight months of the year, undermining consumer confidence. Authorities have acknowledged a strong supply versus weak demand imbalance, indicating that factories are producing goods that Chinese consumers either cannot or will not buy.
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