China’s economic indicators showed fading growth momentum in October, underscoring persistent domestic pressures as investment cooled despite steady consumer spending while markets grappled with uncertainty from the trade war.
National fixed-asset investment from January to October fell by 1.7 per cent, widening from the 0.5 per cent drop recorded in the first nine months and underperforming Wind’s forecast of a 0.71 per cent decrease.
A National Bureau of Statistics (NBS) official attributed the decline partly to increasingly cautious investor sentiment and the slowdown in the property market, but expressed confidence that Beijing would achieve its annual growth target.
“The external environment is complex and challenging, while domestic competition is intense, and with declining investment returns, market participants have become more cautious in making investment decisions,” said Fu Linghui, spokesperson for the bureau, at a press conference on Friday.
“With weaker corporate profitability and the reduced appetite of private investors, overall investment growth slowed.”
He added that investment in real estate accounted for a 3 percentage point drag on overall investment, since the sector makes up a large share of the total.