China factory output, retail sales slump as economy loses steam due to C-19
BEIJING: China’s factory output grew more slowly than expected and retail sales unexpectedly dropped in October, suggesting the world’s second-largest economy is losing momentum as it struggles with protracted Covid-19 curbs and a property downturn.
Property investment also fell at its fastest pace in 32 months, pointing to further weakness in a sector that accounts for a quarter of the economy.
China’s economy is facing a series of headwinds including its zero-C-19 policy, a property slump and global recession risks. Recent moves to ease some C-19 curbs and provide financial support to the property market have underpinned market sentiment, but analysts expect Beijing’s strict C-19 policy to continue to weigh on economic activity.
Tuesday’s figures were the latest to point to a weakening economy after recent data also showed exports unexpectedly contracting and new bank lending tumbling more than expected. Recent inflation data also showed faltering domestic demand
“October activity growth broadly slowed and missed market expectations, pointing to a weak start to Q4 as a worsening COVID situation, prolonged property downturn and slower export growth more than offset continued policy stimulus,” analysts at Goldman Sachs said in a note.