China’s economic challenges deepened in August, with consumption, industrial activity, and investment all showing signs of continued softening. Economists are increasingly warning that time is running out for significant government stimulus to revitalize growth and ensure the nation meets its annual economic targets.

The urgency for action has been heightened by the new barriers facing Chinese exports, as the United States and its Western allies increase tariffs. With weakened performance in key areas, including a faltering property market, low investor confidence, and mounting local government debt, the world’s second-largest economy faces a range of pressing issues.

Data from the National Bureau of Statistics (NBS) released on Saturday indicated broad-based economic weakening. Retail sales, a primary indicator of consumer spending, grew by just 2.1% year-on-year in August, down from 2.7% in July and missing the 2.68% projection from Chinese financial data provider Wind.

Property investment, another area hit by the ongoing real estate market slump, dropped 10.2% year-on-year during the first eight months of 2024, mirroring the decline from the previous period.