China's industrial production rose 5.9% YOY in October, beating expectations of 5.7% and previous reading at 5.8%, while investment in fixed assets rose 5.7% in the last 10 months, while expectations for 5.5 %.
As for private investments in fixed assets, we saw an increase of 8.8% during the period from January to October compared to 8.7% during the first three quarters of the year. Private investment accounts for 60% of total investment in China in general.
However, retail sales unexpectedly rose at a lower-than-expected pace, according to data released this morning. Sales rose 8.6% YOY in October, and were expected to rise 9.1% after rising 9.2% in September.
Infrastructure spending, which occupies a high position among China's policymakers, also showed growth of 3.7% in the first ten months of the year compared to the previous reading of 3.3%. However, China has pledged to continuously promote investment in infrastructure in an attempt to boost demand.
With US trade tariffs threatening to escalate pressure on China's already sluggish economy, policymakers have shifted focus in recent months to measures to boost growth, from increased spending on infrastructure to lower taxes and fees. But some believe it will take some time before the economy begins to stabilize.
But China's biggest concern lies in domestic developments, with domestic consumption slowing as domestic debt mounts, while the real estate sector suffers a marked slowdown.
