China’s national economy maintained its momentum of stable and sustainable growth in August 2025, according to a report released on September 15 by the National Bureau of Statistics (NBS). The data paints a picture of a resilient economy navigating both internal and external challenges, driven by strong performance in high-tech manufacturing and services, even as the property sector continues to lag.
Industrial Production Recorded Strong Growth
Industrial production saw robust growth in August, with the total value added of industrial enterprises above the designated size increasing by 5.2% year-on-year. This figure points to a healthy and expanding industrial base.
Growth was primarily driven by a strong performance in advanced manufacturing sectors. The value added of equipment manufacturing rose by 8.1%, while high-tech manufacturing surged by 9.3% year-on-year. This strong outperformance highlights the success of China’s strategic push towards higher-value industrial output. This trend was reflected in the output of specific products, with new energy vehicles and industrial robots recording significant increases of 22.7% and 14.4%, respectively, underscoring the country’s ambition to lead in key future industries.
Service Sector Expanded Rapidly
The service sector, a crucial component of China’s modern economy, continued its rapid expansion. The Index of Services Production increased by 5.6% year-on-year in August, indicating that domestic demand for services remains strong.
Growth was particularly strong in modern, high-skill services. The information transmission, software, and IT services sector, along with the financial industry, showed outstanding performance. Looking ahead, the Business Activity Index for Services remained above the 50-point threshold that separates growth from contraction, signaling that business confidence in the non-manufacturing sector remains robust and points towards continued positive expectations.
Retail Sales and Consumption Steadily Improved
Consumer spending showed steady improvement, with total retail sales reaching 3,966.8 billion yuan in August, a 3.4% increase year-on-year. This consistent growth is a positive indicator of recovering domestic confidence and internal demand.
Growth was particularly strong in both essential goods and certain upgraded categories, such as furniture and household electronics. This suggests that consumers are not only covering basic needs but are also willing to spend on larger-ticket items. The digital economy remained a key driver of consumption, with online retail sales for the first eight months of the year reaching 9.98 trillion yuan, up 9.6% year-on-year, and accounting for a significant 25% of total consumer retail sales.
Investment Remained Stable, Manufacturing Led the Growth
The investment data paints a clear picture of a “dual-speed” recovery. Investment in fixed assets remained stable, reaching 32.6 trillion yuan in the first eight months, a slight increase of 0.5% year-on-year.
The manufacturing sector was a key engine for this stability, with investment in manufacturing increasing by a robust 5.1%. This performance offset the continued weakness in the real estate sector, where investment declined by 12.9%, remaining a significant drag on the overall economy. Investment in high-tech industries continued to show outstanding growth, with information services and aerospace equipment manufacturing surging by 34.1% and 28%, respectively, highlighting where capital is being strategically directed.
Foreign Trade Continued to Grow
Foreign trade demonstrated continued resilience in August despite a challenging global backdrop, with the total value of imports and exports reaching 3.87 trillion yuan, an increase of 3.5% year-on-year. The growth was led by strong exports, which rose by 4.8%, while imports saw a modest increase of 1.7%.
Trade with Belt and Road partner countries was a notable driver of growth, expanding by 5.4%, showing a successful diversification of trade partnerships. The data also highlighted the increasing importance of the private sector, with private enterprises accounting for 57.1% of total trade, a higher share compared to the same period last year, pointing to a more dynamic trade structure.
Employment and Prices Remained Generally Stable
The labor market and price levels remained broadly stable in August, providing a solid foundation for the economy. The urban surveyed unemployment rate stood at 5.3%, a slight seasonal increase but unchanged from the same month last year.
On the price front, the data suggests mixed inflationary pressures. While the headline Consumer Price Index (CPI) declined by 0.4% year-on-year, the core CPI (excluding food and energy) rose by a modest 0.9%. On the industrial side, the Producer Price Index (PPI) fell by 2.9% year-on-year, but the pace of decline narrowed compared to the previous month. This may indicate that the worst of the deflationary pressures are beginning to ease.
Outlook and Policy Direction
Overall, the national economy maintained a stable trajectory with positive progress in August, showcasing a successful transition towards new growth drivers. Looking ahead, government policy will continue to prioritize the stabilization of employment, businesses, and the market. The long-term focus remains on supporting sustainable growth through technological innovation, further opening up the economy, and promoting green development to build a more resilient economic foundation.
Conclusion
The August 2025 report affirms that China’s economy continues to demonstrate stability and resilience in a volatile global environment, successfully fostering new growth engines in high-tech manufacturing and services. However, the NBS noted that vigilance is required against external uncertainties and domestic risks, particularly in the property sector. The government remains committed to maintaining supportive policies to ensure a sustainable and balanced economic recovery.
