MNI BRIEF: China Aug Output, Investment Hit Lowest Of The Year

MNI (BEIJING) - China's economy slowed more than expected in August as weak demand continued to weigh on production, investment, and consumption which hit the second lowest level this year despite summer vacation, data released by the National Bureau of Statistics on Saturday showed.

Retail sales grew 2.1% y/y in August, decelerating from July's 2.7% gain and missing the 2.5% forecast. Retail sales grew 3.4% y/y in Jan-Aug, lower than the previous 3.5%.

Industrial production rose 4.5% y/y in August to mark the lowest reading this year, slowing for the fourth month from July's 5.1% growth and underperforming the expected 4.6%. Industrial output grew 5.8% in Jan-Aug, compared to the previous 5.9%.

Fixed-asset investment registered a 3.4% y/y increase in the first eight months to hit the lowest level this year, moderating from the 3.6% growth over the Jan-Jul period and missing the 3.5% consensus. Property investment fell by 10.2%, unchanged from the previous decline. Infrastructure investment and manufacturing investment grew by 4.4% and 9.1%, compared with the previous 4.9% and 9.3%. (See MNI: PBOC Relending Boost More Effective For Housing- Advisors)