Chinese consumers pull back, but other indicators stabilise

BEIJING: Chinese consumer spending slowed in October, official data showed yesterday, adding to worries over the world’s second-largest economy, but investment and industrial production appeared to stabilise.

Concerns about China have increased in recent months after third- quarter growth came in at its slowest pace in nine years, and as trade frictions with the US have ratcheted upwards.

Chinese officials are currently engaging with their US counterparts as the two economic giants try to work out a compromise on trade ahead of President Xi Jinping’s meeting with Donald Trump later this month at the G20 gathering.

The National Bureau of Statistics said on Wednesday that retail sales slowed to an 8.6 per cent year- onyear increase in October, slightly short of estimates and down from 9.2 per cent in September.

The NBS blamed the deceleration on consumers holding off from making purchases until Singles Day, China’s annual discount shopping bonanza that was held on November 11.

“Given uncertain and unstable factors abroad, there are concerns over the slower though stable economic development which is facing downward pressure,” bureau spokeswoman Liu Aihua told a news briefing.

“The world economy and trade growth momentum have weakened while international financial markets have been turbulent.”

Exports to the major United States market have held up so far but analysts forecast a dimming picture in the months ahead, reinforcing the need for China to rely on its legions of domestic consumers to grow the economy.

The trade row with the US has sappedmarketconfidence, dragging down Chinese equities and the yuan currency. On the positive side, fixed-asset investment, a key economic driver, showed signs of rebounding. — AFP