China reported a notable 4.8% year-on-year increase in retail sales for October, surpassing the 3.8% forecast and marking an improvement from September’s 3.2% growth. This growth highlights the impact of recent stimulus efforts aimed at boosting the economy. However, the real estate sector continued its downturn, with investment in the property sector falling by 10.3% year-to-date compared to the previous year, marking an even steeper drop than seen in September.
Industrial production rose by 5.3% year-on-year, though it fell short of the 5.6% forecast, and fixed asset investment showed a modest year-to-date increase of 3.4%. National Bureau of Statistics Spokesperson Fu Linghui emphasized efforts to stabilize the real estate sector, while experts predict property investment may see slight improvements in the next 12-18 months.
Meanwhile, China’s infrastructure and manufacturing investments showed marginal increases, and the urban unemployment rate dropped slightly to 5%. These gains follow an array of policy measures, including interest rate cuts, support for real estate, and a significant fiscal program to aid local governments. While domestic demand remains soft, the core consumer price index ticked up 0.2%, a modest rise compared to September’s 0.1%.
China has ramped up economic support efforts since September, although persistent challenges remain domestically and abroad. With GDP growth at 4.8% in the first three quarters, the country remains focused on achieving its annual 5% growth target.
