New Delhi, Sep 29 (IANS) In some more bad news for the Chinese economy, MSCI China’s consumer goods sub-indices plunged roughly 18 per cent over the past six months, nearing 10-year low.
According to a report in the Taipei Times, retail sales were just 0.4 per cent in August. During the latest earnings season, consumer durable companies in the MSCI index missed profit expectations by nearly 50 per cent, reflecting China’s lopsided economy.
According to experts quoted as saying, investors have become increasingly concentrated in AI companies, while consumption sector has “been sold indiscriminately.”
Weak consumer demand emerged as a recurring theme during the latest earnings season.
While China has been viewed as the world’s manufacturing hub, the country’s economy, that was once growing at a robust pace, has hit a rough patch with key sectors in contraction mode and unemployment on the rise, according to another report.
The Chinese economy is faltering, and the government is working tirelessly to conceal the depth of its crisis. Official GDP growth figures continue to hover around 4.5–5 per cent, but independent analysts and institutions suggest the real number is far lower, closer to 2–3 per cent, according to an article in the Kathmandu-based hamrakura.com news website.
“The Chinese Communist Party (CCP) has long relied on economic performance as a cornerstone of its legitimacy. Growth figures are celebrated as proof of competence, while dissenting voices are silenced. But the cracks are now too wide to ignore. The property sector, once the engine of household wealth, has collapsed,” the article states.
Retail sales, a measure of consumer confidence, grew by barely 1 per cent in June 2026, reflecting a population that is saving rather than spending. Debt levels, particularly among local governments, have soared to unsustainable heights.
–IANS
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