”The slowdown in the domestic economy was broad-based in August. Not only that growth in industrial production and retail sales slowed, fixed asset investment fell sharply and it was broad-based across industries. Exports were the only bright spot, but their growth also eased. We expect the government to dial up fiscal stimulus again, considering that growth is a key objective for Beijing and local governments. Broad-based domestic weakness China’s economy slowed markedly in August. The domestic slowdown was broad-based, notably with a sharp fall in investment. • While industrial production still registered a decent growth of 5.2% yoy in August, it was slower than 5.7% in July and 6.4% in H1. • On the demand side, retail sales growth eased to 3.4% yoy from 3.7% in July and 5% in H1.’
Morten W. Langer
