China’s October data underscored intensifying domestic strains, with new home prices sliding 0.45% month-on-month, the sharpest fall in a year, as the country’s property downturn deepens. Industrial production rose 4.9% year-on-year, missing expectations and slowing from September, while retail sales grew a softer 2.9%. Fixed-asset investment fell 1.7% in the year to date, a much weaker outcome than economists had forecast.
- National Bureau of Statistics spokesperson Fu Linghui said the economy is operating “relatively smoothly” and highlighted growth in emerging industries, but acknowledged mounting domestic and external headwinds that are forcing a structural shift.
Economists said the housing market remains the biggest drag, pointing to weak investment, excess supply in the second-hand market and subdued consumer sentiment. Analysts, including Yuhan Zhang of the Conference Board, expect policymakers to continue funnelling capital into infrastructure, advanced manufacturing and industrial upgrading as Beijing tries to stabilise growth.
