China's industrial production recorded its weakest growth in a year

Economic activity in China turned down more than expected at the start of the fourth quarter, driven by investments and industrial production.

According to data released this morning by the National Bureau of Statistics (NBS), industrial production rose 4.9% in October compared to the same month last year. The median forecast of economists surveyed by Bloomberg was for a 5.5 percent increase. Industrial production rose 6.5 percent in the previous month. Fixed asset investments contracted 1.7 percent in the first 10 months of the year, marking a record decline for the period.

Infrastructure investment barely grew, manufacturing spending growth slowed, and real estate investment declined further. Retail sales rose 2.9%, extending their longest decline since 2021 into a fifth month. The survey-based urban unemployment rate fell slightly to 5.1%. In a statement accompanying the data, the NBS pointed to “a large number of unstable and uncertain factors in the external environment” and noted that there was significant pressure on “economic restructuring within the country.”

The statement added that officials would “actively facilitate the implementation” of current policies. This was interpreted as meaning that the Beijing administration may not rush to provide further stimulus to the economy despite the weak data.