Source: Sharecast
According to the National Bureau of Statistics, GDP grew by 4.5% in the three months to September, building on growth of 4.3% in the previous quarter and ahead of forecasts for 4.4%. Beijing is targeting annual growth of 4.5% to 5%.
The increase was driven by was robust foreign demand – particularly for AI-related components, high-tech manufactured products and electric vehicles – as well as solid growth in industrial production, which rose by 5.5%, in line with forecasts.
Retail sales of 1.1% in September lagged industrial output significantly, although the print was both ahead of forecasts – for just 0.5% – and a notable improvement on August 0.4%.
An NBS spokesperson said that while third quarter growth rate was low by historical standards, it was one of the strongest among the world’s main economies. He also acknowledged “insufficient” domestic demand and a “complex and constantly changing” international backdrop, noting: “The foundation for stable and improving economic performance still needs to be consolidated.”
The unemployment rate was 5.2%, down only modestly on the previous reading of 5.3%, while fixed asset investment in the year-to-date fell 7.2%, broadly in line with expectations.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: “Chinese growth numbers came in better than expected, though growth remains heavily supported by exports rather than domestic consumption, at a time when trade tensions with the European Union are rising too.”
Patrick Munnelly, partner, market strategy, at Tickmill Group, said: “The beat is welcome but not decisive. Beijing still faces work in the fourth quarter to meet the annual growth goal. Markets will focus on whether activity data show genuine domestic momentum or continued reliance on external demand and policy support. The broader geopolitical backdrop remains tense.”