China say stabilisation taking hold despite weak investment and industrial slowdown in Oct | investingLive

China’s October activity data painted a mixed picture, with retail sales modestly beating expectations while industrial output and

-investment weakened, underscoring the economy’s uneven momentum as policymakers continue pushing stimulus through the end of the year.

Retail sales rose 2.9% year-on-year, supported in part by spending over the National Day and Mid-Autumn Festival holidays. But industrial production grew just 4.9%, a sizeable miss versus forecasts and well below September’s pace. Fixed asset investment deteriorated further, falling 1.7% year-to-date, dragged down by collapsing property-sector activity. Real estate investment dropped 14.7% in the first ten months, while new starts and developer funding posted deep double-digit declines.

The unemployment rate improved slightly to 5.1%.

Commenting on the data, a spokesperson for the National Bureau of Statistics (NBS) said holiday-driven consumption boosted services activity but acknowledged slowing investment due to a “grim external environment” and intensifying domestic competition. Firms are increasingly cautious in their investment decisions, the spokesperson said, though the overall structure of investment is “improving,” with manufacturing in emerging sectors still expanding.

The NBS argued China retains “huge” investment potential and pledged to “further spur private investment vitality.” On trade, the spokesperson described China as resilient despite rising global protectionism, saying the authorities would stabilise exports and support firms under pressure.

The bureau said short-term pain is inevitable as new growth drivers replace old ones, but insisted the stabilising domestic backdrop — including an improvement in supply-demand dynamics and rising prices for services and industrial products — helped push CPI back into positive territory. The NBS concluded that stabilisation efforts are laying a “firm foundation” for achieving full-year growth targets.

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The NBS messaging leans heavily on stabilisation and resilience, but the sharp investment and property-sector declines reaffirm China’s uneven recovery and continued reliance on targeted policy support.