Chinese economic data disappoints as broad slowdown continues

(Sharecast News) - Year-on-year increases in Chinese industrial production and retail sales both slowed to their lowest levels in more than a year in October, according to official government data out on Friday, while fixed-asset investment dropped by its most since 2020. Industrial production growth eased to just 4.9% last month, compared with a 6.5% annual increase in September, the National Bureau of Statistics said.

This was the lowest rate of year-on-year growth since August 2024, coming in well below the 5.5% gain expected by economists.

Manufacturing activity growth fell to just 4.9% from 7.3% the month before, while mining activity rose by 4.5% after growing 6.4%, with slowdowns thought to be a result of the Golden Week national holiday.

Meanwhile, Chinese retail sales totalled CNY4.629trn in October, up just 2.9% over last year, the government reported.

While above the 2.7% consensus forecast, this was also the weakest rate of growth since August 2024, with notable falls in sales of cars (down 6.6%) and building materials (down 8.3%).

In other data, fixed-asset investment over the first ten months of 2025 totalled CNY40.891trn, down 1.7% over last year after a 0.5% year-on-year decline over the first nine months combined.

This was well below the -0.8% consensus forecast and the steepest drop registered in year-to-date figures since June 2020.