China’s October retail and industrial data miss expectations

Covid cases have soared in China’s capital city of Beijing, where many communities have been recently locked down or under tighter health monitoring as the country maintains its zero-Covid policy.

According to data released by China's National Bureau of Statistics, three indicators on China's economy missed expectations in October.

The data shows that retail sales fell in October from a year ago.

Retail sales and industrial production were expected to grow at a slower rate in October.

Fixed asset investment for the first 10 months of the year grew by 5.8%, below expectations for maintaining the same pace as September, with a 5.9% increase year-on-year.

On a year-to-date basis, investment in real estate fell further in October, while manufacturing slowed a bit. As of October, investment in infrastructure was 8.7% higher than it was in the previous year.

There was no change in the unemployment rate in October. There was no change in the number of young people who were 16 to 24.

October's drop in retail sales dragged down the year to date figure. Catering, apparel, and home appliances all saw sales decline last month.

Car sales did not decline. CNBC calculations show that online sales of physical goods increased 22% in October to account for more than a quarter of retail sales.

The data showed a decline in trade and domestic demand last month.

The producer price index fell for the first time in nearly two years in October, while exports dropped for the first time in five months. The core consumer price index, which excludes food and energy, was unchanged in October.

The credit data was disappointing due to the slump in the property market. Household loans for the first 10 months of the year are half what they were a year ago.

According to financial media and official notices, authorities have announced measures to support the property market. Hu said in a report that policymakers now have the courage to take more decisive actions.