China loses steam as October factory output growth slows

China, flag,

China‘s industrial output cooled last month, while fixed asset investment and retail sales grew slower than expected, suggesting the economy may be loosing some steam as the government cracks down on debt risks and pollution.

 

Industrial output rose 6.2 percent in October from a year earlier, missing analysts’ estimates of a 6.3 percent gain and down from a 6.6 percent increase in September.

 

Fixed-asset investment growth slowed to 7.3 percent in the January-October period, the National Bureau of Statistics (NBS) said on Tuesday. Analysts had expected an increase of 7.4 percent.

 

China’s economy has surprised financial markets with robust growth of nearly 6.9 percent in the first nine months of this year, underpinned by a recovery in its manufacturing and industrial sectors thanks to a government-led infrastructure spending spree, a resilient property market and unexpected strength in exports.

 

That has supported the world economy as the Asian giant has continued to hoover up commodities and consumer goods, helping to stoke underlying global demand for cars and smartphones to TVs and industrial products.

 

But the world’s second-largest economy has started to show signs of fatigue, with momentum seen slackening further as Beijing’s crackdown on debt risks curbs demand and tighter pollution rules hits factory output.

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