China's economy is showing signs of weakening, with retail sales and industrial output posting their slowest growth rates this year amid trade tensions with the US and domestic challenges, reported London's Financial Times.

Retail sales rose 3.4 per cent year on year in August, according to the National Bureau of Statistics. The figure fell short of analysts' expectations of 3.9 per cent and was lower than July's 3.7 per cent increase.

Industrial output expanded 5.2 per cent last month compared to a year earlier, down from 5.7 per cent in July. Both indicators marked the slowest pace of growth since November 2024.

Fixed asset investment growth from January to August slowed to 0.5 per cent, missing economists' forecast of 1.4 per cent and down from 1.6 per cent recorded in the first seven months of the year.