China's August retail sales were +2.5% y/y compared to +7% expected and +8.5% in July.
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From China's National Bureau of Statistics, a spokesman:
- main economic indicators still maintained fairly good growth in August
- economy still in recovery
- consumption was hit by the pandemic, floods
- the unemployment rate amongst young people improved, policy support is having an impact
- pressure on employment still exists
The data from China in the second half of 2020 showed a huge economic bounce back from the pandemic. China was 'first in, first out'. Perhaps the most important point to be gleaned from the performance of the Chinese economy this year is the strong bounce back dissipated and growth will be pushed around as secondary waves hit.
China is well placed to combat weakness as it occurs, there is plenty of scope for fiscal stimulus if needed.
