China's economy slows more than expected

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China's economy slows more than expected
Photo: Mark Schiefelbein AP/TT

China's economy began the fourth quarter of the year with a bigger-than-expected economic slowdown. Investment fell, industrial production slowed, and retail growth slowed.

Industrial production increased by 4.9 percent in October compared to October last year. This compares with a growth rate of 6.5 percent in September.

Analysts had expected a slowdown, but on average only to 5.5 percent, according to a Bloomberg survey.

When it comes to investments in fixed assets, the first ten months of the year sum up to minus 1.7 percent, which is the worst development measured for the period.

Statistics from China's retail trade show a 2.9 percent increase in October, marking the fifth consecutive month of slowdown.

However, unemployment in the major cities was moving in the right direction and fell marginally to 5.1 percent.

The reaction on the fixed income and currency markets was limited, but Chinese stock markets were down after the statistics following the price increase on Thursday.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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