China says its factory output in August slowed to 6.9 percent from a year earlier amid waning export demand and a slump in real estate development that has undermined steel and cement production.

The growth rate for industrial production in August was down sharply from 9.0 percent in July.

The bureau said exports to major markets in Japan, Europe and the United States have dropped and that China's markets for vehicles and mobile phones appears to be saturated after years of rapid growth.