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China’s October Data Show Weakest Factory and Retail Growth in Over a Year as Investment Shrinks

Policymakers are turning to fiscal support to steer a difficult pivot toward consumption-led growth.

Overview

  • Industrial output rose 4.9% year on year and retail sales grew 2.9% in October, both the softest readings since mid‑2024, according to the National Bureau of Statistics.
  • Fixed-asset investment fell 1.7% in the first ten months versus a 0.5% drop through September, while new-home prices recorded their fastest monthly decline in a year.
  • Exports unexpectedly contracted in October after earlier strength, with tensions with the United States preceding a late‑month agreement to temporarily trim tariffs.
  • Beijing has announced more than 1 trillion yuan in additional fiscal support since September, as analysts note the measures will take months to filter through and the PBOC signals limited appetite for fresh easing.
  • Economists still expect full‑year growth near the official target, with consensus forecasts around 4.9% for 2025 despite the uneven recovery.