China factory output holds up in August, investment weakens

BEIJING (AP) — Government data show Chinese factory output held up in August but investment weakened, adding to challenges for communist leaders in the midst of a tariff battle with Washington.

The data Friday suggested domestic demand was weakening and showed little impact yet from stimulus measures that include easing lending controls.

The National Bureau of Statistics reported growth in industrial output edged up to 6.1 percent from July's 6 percent. Investment in factories, real estate and other fixed assets rose 5.3 percent in the first eight months of the year, down from 5.5 percent in January-July.

The world's second-largest economy has yet to show much impact from the trade battle with Washington. But activity was forecast to weaken after Beijing tightened lending controls to cool a debt boom.