14.09.201701:57:00UTC+00China Growth Indicators Slows in August

Expansion in retail sales and industrial output in China unexpectedly decelerated in August as growth in fixed asset investment fell more than expected.

Retail sales provided a disappointing surprise to economists. Against their expected average growth of 10.5 percent, actual figures clocked in at 10.1 percent year-on-year growth. In July, the gauge rose 10.4 percent.

Sales growth was still weak at bigger enterprises, clocking in at 7.5 percent. Weak consumer spending came as urban fixed-asset investment increased 7.8 percent for the months from January to August, falling from the 8.3 percent recorded at the end of July and contrary to expectations that growth would decelerate by only 0.1 percentage point.

State-backed companies saw more activity, with investment up 11 percent for August against an increase of 6.4 percent from privately-owned firms.

Factory production was also disappointing, increasing 6.0 percent year-on-year on August, the slowest pace in nine months, according to official government data. Output was estimated to expand 6.6 percent in August, higher than the 6.4 percent in the prior month.