CHINA’S economy largely showed further signs of steadying in October as expected, but disappointing retail sales growth and fears of U.S. trade frictions under incoming President Donald Trump are increasingly clouding the outlook.

    Fixed-asset investment quickened slightly and beat expectations in January-October as the government stepped up infrastructure spending to support growth, official data showed yesterday.

    But a number of other indicators released over the past week from exports to bank lending, as well as expectations of a slowdown in the heated property market, suggest economic momentum may falter in the months ahead.

    Fixed-asset investment expanded 8.3 percent in the first 10 months from a year earlier, slightly ahead of market expectations and supported largely by government spending.

    Investment by State firms surged 20.5 percent, though the pace cooled slightly from the first nine months.

    In an encouraging sign, growth of private investment picked up to 2.9 percent from 2.5 percent in January-September, though it remained sluggish after hitting a record low of 2.1 percent in the first eight months of the year.

    Private investment accounts for about 60 percent of overall investment in China.

    Chinese policymakers have been trying to lure private investors into big infrastructure projects through public-private partnerships, but many lucrative sectors are still dominated by less efficient State firms.

    The most surprising miss for October was found in retail sales, though analysts were quick to note it was too early to tell if slowing consumption would turn into a trend.

    Retail sales growth cooled to a five-month low of 10.0 percent from 10.7 percent in September. Analysts had forecast they would hold steady.

    Statistics bureau spokesman Mao Shengyong blamed the sales slowdown on a high level of comparison with last year.

    October industrial output also missed expectations but to a much smaller degree, rising 6.1 percent, the same pace as in September but marginally less than forecast.

    Stronger factory prices have helped boost industrial profits, relieving some pressure on companies squeezed by higher costs and weak demand, though there are concerns some of the gains are due to speculation and are not sustainable.

    Data last week showed a sharp slowdown in bank lending last month, suggesting demand for mortgages is cooling after a spate of steps by local governments last month to restrict home purchases to cool soaring prices.

    While property investment growth quickened in October to its highest since April 2014, some analysts suggested it could be due to a last-minute push by developers to complete construction projects as home sales and surging prices start to slow.

    (SD-Agencies)

    Rare drop in fiscal spending

    GOVERNMENT spending in China posted a rare drop in October, but still surged 10 percent in the first 10 months of the year as officials looked to shore up economic growth.

    A 12.5 percent decline in fiscal spending in October from a year earlier was largely due to a high base of comparison with the same period last year, the Ministry of Finance said yesterday.

    Most analysts believe the government will have to continue its robust spending amid growing domestic and global economic uncertainties, though top officials are also increasingly concerned about the dangers posed by rising levels of debt.

    Central government spending rose 5.6 percent in October from a year earlier, while spending by local governments dipped 15.5 percent, the ministry said in a statement on its website.(SD-Agencies)