China’s industrial production grew more slowly than expected in October, as manufacturers continued to face weak domestic demand and ongoing trade tensions with the United States.
Retail sales, however, came in slightly better than forecast thanks to increased consumer spending during the Golden Week holiday.
Official data released Friday showed industrial output rising 4.9% year-on-year in October, below expectations of 5.5% and sharply lower than the 6.5% growth recorded in September.
Producers have struggled for several years with subdued demand, as uncertainty about the broader economic outlook led both households and businesses to cut back on spending. Persistent deflation in factory-gate prices also weighed on production, despite Beijing’s ongoing pledges to support growth.
Trade tensions with the U.S. added further pressure, with export orders weakening on concerns over potential tariff increases. Some relief came after Washington and Beijing signed a trade agreement in late October.
Business investment remained weak. Fixed asset investment fell 1.7% from a year earlier—almost double expectations for a 0.9% decline—and marked a larger drop than September’s 0.5% decrease.
Retail sales were a modest bright spot, rising 2.9% year-on-year in October and slightly ahead of expectations for 2.7% growth. However, this was just below the 3% increase seen in the previous month.
The gains were driven largely by holiday-related spending during Golden Week, with early Singles’ Day shopping activity also supporting consumer demand.
