China’s economic slowdown deepens in October

By Mucahithan Avcioglu

ISTANBUL (AA) - China’s economic slowdown intensified in October as weak consumer demand, shrinking investments and an extended holiday period further weighed on factory output.

Industrial production grew 4.9% year-on-year, down from September’s 6.5% expansion, official data from China's National Bureau of Statistics showed Friday.

Manufacturing activity contracted more than expected during the Oct. 1-8 National Day holiday, falling to its lowest level in six months.

Retail sales, a key indicator of consumption, rose 2.9% in October, slightly below the 3% increase recorded in September.

- Investments decline

Fixed-asset investment -- covering infrastructure, real estate, machinery and equipment -- fell 1.7% in the January-October period, reversing a 0.5% rise in the first nine months.

The property downturn, now in its third year, continued to pressure overall investment. Real estate spending dropped 14.7% in the first 10 months, a sharper fall than the 13.9% decline through September.

New home sales by floor area contracted 6.8% over the same period, compared with a 5.5% drop in the first nine months.

Excluding real estate, fixed-asset investments rose 1.7% in the first 10 months.

- Unemployment ticks down

China’s urban unemployment rate edged down to 5.1% in October from 5.2% at the end of September.