China’s economy under further pressure in August, as analysts expect rebound next quarter

China’s economy came under further pressure in August, as sluggish investment and consumption highlighted persistently weak domestic demand, although analysts expect a rebound in the fourth quarter as state intervention begins to take effect.

Retail sales, a major gauge of consumer spending, grew last month by 0.4 per cent year on year, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

The reading was lower than a 0.73 per cent rise forecast by economists surveyed by Chinese financial data provider Wind, and was down from the 0.6 per cent increase in July.