China’s property sector continued to weaken in August, with real estate investment falling 12.9% in the first eight months of the year, a sharper decline than the 12.0% drop reported in July. The persistent downturn is weighing heavily on the broader economy and straining Beijing’s efforts to boost domestic demand.
New home sales by value fell 7.0% year-over-year during the January–August period, widening from a 6.2% decline in the first seven months. Average home prices across 70 major Chinese cities dropped 3.0% in August from a year earlier, according to government data.
The slowdown in property has dragged on fixed asset investment, which grew just 0.5% in the first eight months, down from 1.6% in July. Retail sales rose 3.4% in August, easing from 3.7% in July, while industrial production increased 5.2%, missing economists’ 5.8% forecast.
China’s urban unemployment rose to 5.3% in August, up from 5.2% in July, as new graduates entered the workforce. Exports grew 4.4%, the slowest pace in six months. Producer prices fell 2.9% year-over-year, and consumer inflation remained flat, highlighting continued economic pressure.
The housing slump and weak consumer confidence are major obstacles to growth, despite Beijing’s modest stimulus efforts.
