China’s Late Summer Economic Numbers Point to Ongoing Structural Weakness in its Economy The string of recent largely disappointing economic data drops from China continued during the late summer, underscoring ongoing structural problems in the world’s second largest economy. While deflationary pressure eased a bit, factory gate prices continued their now close to 3-year decline, while the GDP deflator remained underwater for the 9 th quarter in a row, pointing to continued anemic household consumption. Industrial profits rebounded in August, but this recovery was uneven across different sectors and in some measure a statistical artifact. Fixed asset investment, on the other hand, turned negative year-on-year in late summer, reversing gains made earlier in 2025, while the prolonged slump in housing showed little sign of easing. Although China may be on track to meet the government annual economic growth target of “around 5%,” this achievement rests on the in...