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China's Industrial Output, Retail Sales Growth Slows

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China's industrial production and retail sales growth decelerated in October and property investment cooled, as measures taken to curb excessive debt and factory pollution weighed on activity.

Industrial production grew 6.2 percent year-on-year in October, but slower than the 6.6 percent expansion seen in September, data from the National Bureau of Statistics showed Tuesday. This was also weaker than the expected growth of 6.3 percent.

Likewise, retail sales growth eased to 10 percent from 10.3 percent in September. Economists had forecast growth to improve to 10.5 percent.

During January to October, fixed asset investment climbed 7.3 percent compared to 7.5 percent rise seen for nine months ended September.

Investment in real estate development rose 5.6 percent in October, which was slower than September's 9.2 percent increase.

Data released by the People's Bank of China on Monday showed that new yuan loans declined notably to CNY 663.2 billion in October as banks tightened lending.

The upshot is that a cooling property sector and slightly softer foreign demand weighed on the economy last month, Julian Evans-Pritchard, China economist at Capital Economics, said.

Disruptions from the anti-pollution crackdown in the north-east of the country probably contributed too, he noted. Moreover, the support from strong infrastructure spending is unlikely to last given that local governments are set to reduce spending in the final months of the year, the economist added.

by RTT Staff Writer

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