- Xia Le, economist at Banco Bilbao Vizcaya Argentaria SA
China's industrial production and urban fixed investment continued to slow in October, while retail sales rose, suggesting the world's second biggest economy shifted toward greater reliance on consumer consumption as old growth engines faltered. Industrial output, which measures the economy's manufacturing, mining, utilities and other output, increased 5.6% last month from a year earlier, the weakest pace of growth since 2008. The reading missed economists' expectations for a 5.8% gain and came below September's 5.7% rise. Measured on a monthly basis, industrial production climbed 0.46% in October, following a 0.38% gain a month earlier. At the same time, urban fixed investment soared 10.2% in January to October compared to the same period a year earlier, slowing from the 10.3% pace seen previously. Yet, the data beat economists' predictions for a 10.1% gain.
Good news, however, came from the nation's retail sector, where sales surged by 11% from a year earlier in October, marking the fastest annual increase since December 2014. Beijing would welcome the data, as policy makers are seeking to transition the economy away from export and investment-driven growth to a consumption-led model.
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