China retail sales miss forecasts as investment growth slows in August

China’s domestic economy showed renewed weakness in August, with retail sales growth slowing to 0.4% year over year from 0.6% in July and missing economists’ 0.8% forecast. Fixed-asset investment fell 7.2% in the first eight months of the year, while the urban unemployment rate edged up to 5.3%. Industrial production provided a counterpoint, accelerating to 5.2% growth from 4.5% in July and exceeding expectations. Officials acknowledged a pronounced imbalance between strong supply and weak demand, as well as intensifying external pressures and difficulties for some companies, increasing pressure on Beijing to strengthen fiscal and other policy support. The prolonged property downturn continued to weigh on the economy, with new and resale home prices declining in August.