Industrial production and retail sales in China grew below expectations in August, raising concerns about the need for economic stimulus.

The National Bureau of Statistics of China reported a 5.2% increase in industrial production in August, below analysts' expectations and that of July. Retail sales grew by only 3.4%, the lowest rate since November 2024. The unemployment rate rose to 5.3%, while housing prices decreased. Economists suggest that fiscal stimulus may be needed to achieve the growth target of 5% for the current year, in the context of weak domestic demand and trade uncertainties.