China’s struggle to boost consumer spending amid slow retail sales

Chinese retail sales growth showed a disappointing 0.4% year-on-year, below the 0.8% forecast. This minimal increase signifies a challenge in revitalizing consumer spending that has stagnated post-Covid-19. Industrial production presents a conflicting picture, expanding 5.2% in August, surpassing expectations of 4.8%. Conversely, fixed-asset investment recorded a 7.2% contraction in the first eight months of 2026. The economy faces notable internal imbalances as stated by the statistics bureau, highlighting the disparity between robust supply and weak demand. Analysts recognize the contrasting signals with consumption and investment weakness amidst sustained industrial growth. Beijing’s pursuit of a growth target between 4.5% and 5.0%…