China’s economic growth slowed to 4.8% in this year’s third quarter, the slowest pace of expansion in 12 months.
While the Q3 growth was in line with the expectation of economists, it was a deceleration from 5.2% annualized growth recorded in this year’s second quarter.
Fixed-asset investment, which includes real estate, unexpectedly contracted 0.5% in the first nine months of the year as spending on infrastructure and manufacturing declined.
Property investment continued its decline, sliding 13.9% through the first nine months of this year. Some economists described the drop in fixed-asset investment as “rare” and “alarming.”
The last time China recorded a contraction in fixed-asset investment was in 2020 during the Covid-19 pandemic.
China’s industrial production in Q3 climbed 6.5% in September, beating expectations for a 5% increase and up from 5.2% growth in the previous month.
Excluding property, fixed-asset investment for the first three quarters of the year rose 3%. Retail sales climbed 3% in September from a year ago, matching economists’ forecasts.
China’s Statistics Bureau said disposable income for city residents rose 4.5% in the first three quarters of this year after adjusting for price changes, while rural residents saw a 6% increase.
The urban unemployment rate dipped to 5.2% in September from 5.3% the previous month.
Official data for September also showed continued resilience in China’s exports despite ongoing trade tensions with the U.S.
In terms of inflation, China’s core Consumer Price Index (CPI), which strips out food and energy prices, rose at its fastest pace since February 2024. But headline inflation fell 0.3% in Q3.
China’s central bank elected to keep its benchmark interest rate unchanged for a sixth-straight month, in line with expectations, with the one-year prime rate at 3% and the five-year rate remaining at 3.5%.