Chinese Industrial Production, Retail Sales Lower Than Expected in August

The trade war continues to wreak havoc on China's economy with industrial production falling to its lowest levels since February 2002.

USD/CNH

The trade war continues to wreak havoc on China’s economy with industrial production falling to its lowest levels since February 2002. China’s industrial production registered a 4.4% growth YoY in August, lower than the 4.8% in July and coming in lower than economists’ forecast for a 5.2% growth.

Investment in fixed assets have also fallen lower, rising at 5.5% in 2019 till August. Economists were expecting fixed-asset investments to grow at a rate of 5.6% during this period. In addition, domestic demand is also weakening within China, with retail sales declined to 7.5% in August vs. 7.6% in July and 7.9% expected by economists.

Prior to this data being released by the National Bureau of Statistics, Chinese Vice Premier Liu He had remarked in an interview that the economy faced downward pressure and would find it difficult to maintain a 6% growth rate this year. The prolonged trade war between US and China have been causing significant weakness in Chinese manufacturing and trade for over a year now, and the situation is expected to continue this way until a trade deal is finalized between both sides.

On the release of this news, the Chinese yuan dipped slightly with USD/CNH trading at 7.062 at the time of writing.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers