China’s Retail Sales Beat Expectations in October Amid Real Estate Drag
China’s retail sales saw a stronger-than-expected growth in October, according to data released by the National Bureau of Statistics. While retail sales grew by 4.8% year-on-year, surpassing the 3.8% forecast, industrial production and investment figures fell short of expectations due to the ongoing real estate slowdown.
Industrial production rose by 5.3% in October, missing the 5.6% growth forecast, while fixed asset investment increased by 3.4%, slower than the predicted 3.5% rise. Notably, investment in real estate declined by 10.3% from a year ago, emphasizing the challenges faced by the sector.
Despite the economic headwinds, Chinese authorities have implemented stimulus measures to bolster the economy. The central bank has cut interest rates and extended support for the real estate market, while the Ministry of Finance announced a 10 trillion yuan program to address local government debt issues.
Additionally, manufacturing surveys indicated an uptick in activity, and exports surged to their highest level in over a year. However, imports declined due to weak domestic demand. While overall consumer spending remains cautious, sales during the recent Singles Day shopping festival exceeded expectations.
Looking ahead, China aims to achieve around 5% GDP growth for the year, with continued focus on economic stimulus and support measures to mitigate the impact of the real estate slowdown.
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