China's Industry and Consumption Recover... Investment Growth Slows Amid Real Estate Concerns (Update)

China's key economic indicators for September, including industrial production and retail sales, exceeded expectations, showing a favorable trend. However, concerns over the real estate slump led to a slowdown in investment growth.

On the 15th, the National Bureau of Statistics of China announced that China's industrial production in October increased by 4.6% year-on-year. This figure surpassed both the previous month's rate (4.5%) and the forecast (4.3%).

[Image source=Reuters Yonhap News]

Retail sales in the same month rose by 7.6% year-on-year, significantly exceeding the previous month's rate (5.5%) and the forecast (7.0%). China's unemployment rate in October stood at 5.0%, unchanged from the previous month.

However, fixed asset investment increased by 2.9% year-on-year, falling short of both the forecast and the previous month's rate (3.1%).

Although the third-quarter economic indicators generally exceeded expectations, concerns about weakening demand persist. In particular, earlier government and private surveys showed a contraction in manufacturing activity and a slowdown in service sector growth. A deterioration in the trade balance due to declining exports was observed, and the possibility of deflation caused by falling prices remains a concern.

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