October data offers mixed bag for China economy


Chinese economic data released yesterday showed that key metrics such as industrial output and investment beat expectations last month, but retail sales fell to a five-month low as the economy continues to face pressures on demand.

Industrial output grew 5.9% in October, according to the National Bureau of Statistics, surpassing estimates from a Reuters poll of 5.7%.

Fixed-asset investment growth, which fell to record lows earlier this year, accelerated to 5.7%, also beating forecasts. Private sector investment, which constitutes 60% of China’s total investment, was up 8.8% in the first ten months of 2018 compared with a year earlier, extending from 8.7% for the first three quarters.

Growth in infrastructure spending, a recent priority of government efforts, rose to 3.7% in the January to October period, from 3.3% through to September.

Other key metrics, notably retail sales, were not so positive. Consumption growth slowed to 8.6% in October from 9.2% in September, below estimates of 9.1% from analysts.


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