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Chinese industrial output growth slows to 4.7 pct year-on-year in October

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China’s industrial output growth slowed in October, rising only 4.7 percent year-on-year, as global and domestic demand weakens.

Economists at Capital Economics were expecting a growth rate of 6 percent.

The world’s second largest economy posted a year-on-year growth of 5.8 percent in September.

“Activity and spending slowed across the board last month, more than reversing the uptick at the end of Q3. With further weakness on the horizon, we think additional policy stimulus is due before long,” Senior China Economist Julian Evans-Pritchard said in a note.

The country’s retail sales growth in October fell to a six-month low of 7.2 percent, missing market expectations in the range of 7.8 to 7.9 percent.

Fixed asset investment expanded by 5.2 percent year-on-year from January to October, which fell behind market estimates of 5.4 percent.

Optimism around a phase-one US-China trade could boost corporate investment in the short run, said Pritchard, but added that even if a minor deal is agreed upon, it would only shift the focus to “more intractable issues that … will eventually lead the trade talks to break down.”