Investments in fixed assets in China fell by 1.7%. in October compared to the same month a year earlier, which is the weakest reading since June 2020, i.e. since the pandemic. This number turned out to be worse than forecasts assuming a decline of 0.9%. and worse than a decline of 0.5%. recorded in September.
Meanwhile new house prices fell by 0.45% in October. compared to the previous month, the highest since October last year and more than a decline of 0.4%. in September, according to data published on Friday by China's National Bureau of Statistics.
Read also: China releases economic data. GDP is growing, but consumption and investment are weakening
China is on the brake, but it is still growing faster than Poland
“Key indicators of activity in China continued to slow,” said Lynn Song, ING's chief economist for China. He said that though the economy will still meet the government's growth target of around 5% for this year, “Supportive policies will be essential to achieve long-term goals.” In other words, it's bad, but only by China's practice over the past three decades. For comparison, GDP growth by 3.7%. YoY in Poland is considered a success.
Industrial production in China it increased by 4.9%. compared to the previous year, below the forecast of 5.5 percent in a survey conducted by Reuters and 6.5 percent. growth in September. Retail in October it increased by 2.9 percent, better than the Reuters poll forecast of 2.8 percent, but it dropped from 3 percent. in the previous month. Both readings were the weakest since August 2024.
Dynamics of industrial production in China
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Comments on the Chinese economy
Fu Linghui, a spokesman for the National Bureau of Statistics, was quoted by The Financial Times as saying that while the overall economy was operating “relatively smoothly” with progress in the development of new industries, there were “many unstable and uncertain factors in the external environment.”
“There is significant pressure to adjust the national economic structure, which poses several challenges to maintaining stable economic activities,” Fu said.
“Economic growth momentum weakened markedly in October,” said Raymond Yeung, chief economist for the Greater China region at Australia & New Zealand Banking Group Ltd., as quoted by Bloomberg. He added that government efforts to combat overcapacity and excessive competition “have impacted investment.”
