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Chinese consumer spending and factory output edged up in August but still were weak, official data showed Friday, and forecasters warned the second-largest economy is vulnerable to repeated shutdowns of cities to fight virus outbreaks.
Housing sales plummeted while prices edged lower, adding to a slide in real estate activity under pressure from a government campaign to control surging corporate debt that set off an economic slump in mid-2021.
“China’s economy held up slightly better than anticipated last month, but momentum still weakened,” said Julian Evans-Pritchard of Capital Economics in a report. “September is shaping up to be even worse.”
Chinese leaders are trying to prop up economic growth that sank to 2.5% over a year earlier in the first six months of 2022, less than half the official 5.5% target, without big stimulus spending that might push up debt and housing costs.
Economists say this year’s Chinese economic growth might come in below 3%, less than half of last year’s 8.
