In its China Economic Briefing, NAB Group Economics said growth in China’s industrial production slowed significantly in August, with output rising 6.9 per cent year-over-year, down from the 9 per cent year-on-year growth rate in July.
The report said this was weakest growth rate since February 2009 and was well below market expectations.
Investment in fixed assets continued to slow, according to the report, with growth at 13.8 per cent year-over-year compared to 15.7 per cent year-on-year last month.
Investment in real estate continues to decline in line with weaker house sales.
Residential property sales fell by around 13 per cent year-over-year in August, compared with the 18 per cent year-on-year decline in growth in July.
According to NAB, retail sales were marginally softer in August, with nominal growth at 11.9 per cent year-over-year, down from 12.2 per cent in July.
The report said sales growth has remained in positive territory in recent times with sales growth largely stable across most major items including food and drink, textiles, clothing and footwear, cosmetics and daily use items, while sales of cars and household goods were slower.
Credit conditions were notably weak in July, with levels falling well below what they did a year ago.
China’s trade surplus was, however, at a record level, rising to US$49.8 billion compared with $47.3 billion in July.
Import trends were surprisingly weak, however, falling 2.1 per cent year-on-year for the second straight month, compared to the 1.5 per cent decline in the year-on-year growth rate last month.
