Nigeria TV Info

China’s Economic Growth Slows in October Amid Weak Domestic Demand

China’s economic growth slowed in October, with both factory output and retail sales expanding at their weakest pace in over a year, signaling mounting pressure on policymakers to boost the $19 trillion export-driven economy.

According to the National Bureau of Statistics (NBS), industrial output rose 4.9% year-on-year in October, the slowest annual growth since August 2024, falling short of forecasts of a 5.5% increase. This represents a significant slowdown from September, when output had grown 6.5%. Retail sales, a key measure of consumer spending, rose just 2.9%, marking the lowest growth rate since August last year and slightly below analysts’ expectations of 2.8%.

Economists point to weak domestic demand and ongoing trade tensions with the United States as key factors weighing on growth. “China’s economy is facing pressures from all sides,” said Fred Neumann, chief Asia economist at HSBC. “Export-driven growth will be hard to sustain, and without meaningful stimulus, domestic consumption and investment may struggle to recover.”

The slowdown was also reflected in weaker export numbers and a break in an eight-month streak of rising car sales, despite expectations of increased auto purchases ahead of subsidy phase-outs. While retail figures received a minor boost from the Singles’ Day shopping festival, consumer sentiment remained subdued, suggesting that even discounted prices have had limited impact on spending.

The October data underscores the structural challenges facing the world’s second-largest economy, highlighting the urgent need for policy measures to sustain growth and revive consumer confidence.