Marketplace Morning Report China's economy hits a rough patch
Dec 15, 2025
Julia Coronado, founder of Macro Policy Perspectives and a professor at the University of Texas, provides insightful analysis on the current state of China's economy. She discusses the troubling signs of stagnation in investment, output, and consumption, highlighting a consumer pullback during key shopping events like Singles Day. Additionally, Coronado analyzes trends in the U.S. labor market, including slow job creation and rising unemployment concerns. Retailers are hiring fewer seasonal workers this year, prompting a deeper look into shifting consumer spending habits.
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China's Growth Is Export-Driven, Not Domestic
- China's official data show stagnation across investment, output, and consumption despite modest GDP targets.
- Exports are propping up growth while domestic demand and property investment weaken sharply.
Weak Indicators Signal Property Pain
- Industrial output and retail sales missed expectations, and fixed-asset investment fell year-over-year.
- The property slump leaves many Chinese investors exposed and keeps consumers reluctant to spend.
Consumers Pull Back, IMF Urges Policy Shift
- Chinese consumers are pulling back, shown by weak Singles Day sales even after extensions.
- The IMF recently urged Beijing to boost domestic consumption rather than lean on foreign demand.