China Industrial Output And Retail Sales Growth Slows

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Fixed asset investment, or spending on infrastructure and property, rose 7.3% year-on-year in the first ten months of the year, moderating from a 7.5% increase over the January-September period.

Likewise, retail sales growth eased to 10% from 10.3% in September.

In the first 10 months, fixed-asset investment (FAI) by the private sector grew 5.8 percent year on year to 31.37 trillion yuan (about 4.73 trillion US dollars), the National Bureau of Statistics (NBS) said. The reading, though it met economists' estimates, was the second slowest this year.


But property and construction activity, two of the economy's main growth drivers, are starting to slow due to higher borrowing costs and government measures to cool a heated housing market and curb industrial pollution.

China's coal production rose in October from a year earlier, government data sowed on Tuesday, with miners ramping up output ahead of the winter heating season.

Retail sales climbed 10.0 percent in October on-year, versus a forecast rise of 10.4 percent, after September's 10.3 percent gain.


Industrial production thus slowed last month from 6.6 percent in September as the government moved to wind down output at some steel factories and smelters in a drive to clean up the nation's smog-ridden cities.

Helped by robust foreign demand and state investment, China posted robust 6.9% growth in the first three quarters of the year, well above expectations at the beginning of the year. Analysts had been expecting growth of 6.2%.

"At the end of the day, China still intends to strike a balance between growth, debt and leveraging", Mr. Zhou said, adding that the Chinese economy is expected to slow further in coming months.


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