Investing.com-- Chinese industrial production grew at a slower-than-expected pace in October amid weak local demand, although retail sales rose past expectations on support from the Golden Week holiday.
Industrial production rose 5.3% year-on-year in October, government data showed on Friday. The reading was weaker than expectations of 5.5% and slowed from the 5.4% seen in the prior month.
The weak industrial production print came as Chinese manufacturing activity remained languid through October, amid persistent headwinds from sluggish local demand and spending. This was also seen with weaker-than-expected fixed asset investment in the month, which grew 3.4% y-o-y against expectations of 3.5%.
But retail sales were a bright spot, rising 4.8% y-o-y in October, much more than expectations of 3.8% and accelerating from the 3.2% seen in the prior month.
The strong print was driven largely by the Golden Week holiday at the beginning of the month. But it also reflected some improvement in private spending, especially after Beijing announced its most aggressive round of stimulus measures through the past month.
China’s unemployment rate also improved marginally to 5% from 5.1%.
Still, Beijing is yet to announce targeted fiscal measures aimed at supporting private consumption and the property market. Data released earlier on Friday showed Chinese house prices shrank 5.9% in October, indicating little improvement in the sector.
China also faces increased economic headwinds from a renewed trade war with the West, given that president-elect Donald Trump has vowed to impose steep trade tariffs against the country.