T
he Chinese economy showed mixed results in October, with a notable surge in retail sales offset by ongoing challenges in the real estate sector. Retail sales jumped 4.8% year-over-year, exceeding forecasts and marking an increase from September's 3.2% expansion. Industrial production also rose, albeit at a slower pace than expected, increasing 5.3%.

    However, investment in real estate continued to decline, dropping 10.3% for the January-October period - a sharper drop than previously reported. This marks the sector's worst performance since 2021, despite authorities' efforts to stabilize it.

    Fu Linghui, spokesperson for the National Bureau of Statistics, noted that the government is focused on supporting the real estate market, which is expected to show slight recovery in the next year or so. Bruce Pang, chief economist at JLL, also predicted a modest rebound in property sales and investment.

    On the employment front, urban unemployment rates edged down to 5% in October from September's 5.1%. However, youth unemployment remains a concern, with rates easing slightly to 17.6% after reaching an August record high of 18.8%.

    Despite these improvements, officials warn that economic risks persist both domestically and internationally. Policymakers are considering stimulus measures to sustain growth around 5% annually.