China’s economy shows signs of recovery with upbeat retail sales and industrial production, but ‘pessimism prevails’
- Industrial production rose by 4.2 per cent in August from a year earlier, while retail sales rose by 5.4 per cent last month
- Fixed-asset investment rose by 5.8 per cent in the January-August period, while the surveyed jobless rate stood at 5.3 per cent last month
China’s economy recovered better than expected in August, but growth momentum continues to weaken amid renewed coronavirus outbreaks and mass lockdowns, slowing exports and a housing downturn, signalling a cloudy outlook for the rest of the year.
Restaurant revenue rebounded to post growth of 8.4 per cent, up from a 1.5 per cent contraction in July. Investment bank Goldman Sachs said, “favourable base effects more than offset the drag from tighter Covid restrictions on the back of protracted local outbreaks”.
Industrial production, a gauge of activity in the manufacturing, mining and utilities sectors, rose by 4.2 per cent in August, year on year, up from 3.8 per cent growth in July.
In comparison, the property market is mired in a deep slump, with real estate investment contracting further to nearly 14 per cent, after a 12.1 per cent decline in July.
