China’s factory output and consumption grew at a faster pace than expected in October, but the property sector continued to drag on the economy, data showed on November 15, 2023.
Industrial output rose 5% in October from a year earlier, beating analysts’ expectations of a 4.5% increase. Retail sales grew 4.9% in October from a year earlier, also exceeding expectations of a 4.3% increase.
The data suggested that the Chinese economy was showing some resilience in the face of global headwinds such as rising interest rates and the war in Ukraine.
However, the continued weakness in the property sector, which accounts for about a quarter of the economy, remains a concern.
Property investment fell 6.1% in January-October from a year earlier, while property sales slumped 26.3% in the same period. The slump in the property sector has been caused by a number of factors, including tighter government regulations on lending and a slowdown in economic growth.
Overall, the Chinese economy is still facing some challenges, but the October data suggested that it is on a path to recovery.
The government is expected to continue to implement policies to support growth, such as infrastructure spending and tax cuts.
Here are some additional details about the Chinese economy:
The Chinese economy grew 3.9% in the first three quarters of 2023.
The government has set a growth target of 5.5% for 2023.
The Chinese economy is expected to grow 4.5% in 2024.
The Chinese economy is a major driver of global growth, so its performance is closely watched by investors and policymakers around the world. The October data was a positive sign for the Chinese economy, but it is too early to say whether it will be enough to meet the government’s growth target.