MNI BRIEF: China's August Investment Slows To Five-year Low

China’s fixed-asset investment growth decelerated to 0.5% y/y in the Jan–Aug period from the previous 1.6%, marking the slowest pace since Aug 2020 and missing an expectation of 1.5%, National Bureau of Statistics data showed Monday.

Property investment fell 12.9% in the first eight months, the sharpest drop since Feb 2020, after a 12.0% decline in Jan-Jul. Infrastructure and manufacturing investment grew 2.0% and 5.1%, down from 3.2% and 6.2%. (See MNI: Beijing Preps Policy-based Bonds Aimed At Infrastructure)

Retail sales slowed for the third month by rising 3.4% y/y, down from July’s 3.7%, hitting a 10-month low and missing the 3.8% forecast. Industrial output grew 5.2% y/y, the lowest reading since Aug 2024, compared with July’s 5.7% and below the 5.6% forecast.