World Economy

China investment growth slows, industrial output misses expectations

China's fixed-asset investment growth slowed to 7.3 percent in the January-October period, and came in slightly below market expectations.

Analysts polled by Reuters had predicted investment growth of 7.4 percent.

Private sector fixed-asset investment rose 5.8 percent in January-October, down from the first nine months of the year.

Industrial output grew 6.2 percent in October from a year earlier, the National Bureau of Statistics said on Tuesday, just under analysts' estimates for a rise of 6.3 percent after increasing 6.6 percent in September.

Retail sales climbed 10.0 percent in October on-year, versus a forecast rise of 10.4 percent, after September's 10.3 percent gain.

The government is targeting annual economic growth of around 6.5 percent this year, down from the 6.7 percent pace clocked in 2016.

China's economy has surprised financial markets with robust growth of nearly 6.9 percent in the first nine months of this year, underpinned by a recovery in its manufacturing and industrial sectors thanks to a government-led infrastructure spending spree, a resilient property market and unexpected strength in exports.

But property and construction activity, two of the economy's main growth drivers, are starting to slow due to higher borrowing costs and government measures to cool a heated housing market and curb industrial pollution.