New Delhi: China’s economic juggernaut has hit a severe roadblock, with October data revealing the weakest factory output and retail sales growth in over a year, intensifying calls for urgent policy overhauls amid escalating U.S. trade tensions and faltering domestic demand.
According to the National Bureau of Statistics, industrial production expanded by a mere 4.9 percent year-on-year, down sharply from September’s 6.5 percent and marking the slowest pace since August 2024. Retail sales, a key barometer of consumer confidence, inched up just 2.9 percent — barely above forecasts but the feeblest rise in 12 months — totalling 4.63 trillion yuan ($661 billion).
The slowdown underscores the crumbling of China’s time-tested growth engines. Exports, once a powerhouse, plummeted unexpectedly as producers grapple with high U.S. tariffs imposed by President Donald Trump, rendering stockpiled goods unsellable elsewhere. Domestic consumption remains anaemic, evidenced by the underwhelming performance of the Singles’ Day shopping extravaganza, where bargain prices failed to lure wary buyers amid eroding household finances.
Compounding woes, fixed-asset investment contracted 1.7 per cent from January to October, far below expectations, while the property sector witnessed the sharpest home price drops in a year. Auto sales, after eight months of gains, reversed course as tax incentives expired, hitting the vital fourth quarter hard.
The Communist Party’s recent plenum pledged to bolster household spending and industrial resilience over the next five years, yet experts warn that without bold stimulus — potentially sidelining infrastructure binges for consumer-focused reforms — the 5 per cent growth target may slip away. As one analyst noted, “The dragon’s roar is fading; without addressing demand imbalances, sustained recovery remains elusive.”