The National Bureau of Statistics reported Monday that retail sales in China increased more than expected in October, despite sluggish fixed asset investment.
In October, retail sales rose by 4.9% from a year ago, exceeding forecasts of 3.5% growth and surpassing the 4.4% rise in September.
The solid retail sales in October were driven by China’s last big public holiday of the year, which kicked off the month. Automobiles and apparel, two major drivers of retail sales, declined in October from a year ago.
As for industrial production, it increased 3.5% year-on-year in October. The consensus forecast was for 3% growth.
In the period January through October, fixed assets investment rose 6.1% from a year earlier, slightly less than the 6.2% prediction
In October, the economy remained weak with the real estate downturn weighing on industry and a new outbreak of Covid dampening consumer spending
Although experts expect the downturn in real estate to be contained, the downturn in industrial production will still drag down growth.
Following a range of policy measures to boost coal production and lower coal prices, we believe electricity shortages and production cuts won’t be a problem any longer
Chinese regulators have been trying to reduce the debt-based growth of the real estate sector in the last two years.
Global investors are concerned about potential fallout from the default of major developers like Evergrande in China, the world’s second-largest economy. The Chinese property sector represents about a quarter of the Chinese economy.
China’s statistics bureau said Monday that new home prices declined in more than 50 of 70 major cities during October.