Summary: China’s economy showed renewed signs of weakness in October 2025, as soft consumer demand, a worsening property downturn, and reduced factory activity during the long holiday period weighed on growth. Official data revealed sharper declines in investment and real estate, underscoring mounting challenges for Beijing’s efforts to stabilize the economy.
China’s economic slowdown intensified in October, with the latest figures from the National Bureau of Statistics (NBS) highlighting the strain of weak domestic demand and a deepening property crisis. The downturn was compounded by the Golden Week holiday, which temporarily reduced industrial output and factory activity CNBC FastBull theglobalnewswire.com.
Fixed-asset investment, which includes spending on real estate, factories, and infrastructure, contracted 1.7% in the first ten months of 2025, worsening from a 0.5% decline in the January–September period. This marks the steepest drop since the pandemic year of 2020. Real estate investment fell 14.7% through October, reflecting persistent weakness in the housing market despite repeated government measures to stabilize developers and restore buyer confidence CNBC allaroundworlds.com.
Retail sales also disappointed, with consumer sentiment dampened by sluggish wage growth and uncertainty in the property sector. Analysts noted that households remain cautious, preferring to save rather than spend, further undermining Beijing’s push to rebalance the economy toward consumption-driven growth CNBC theglobalnewswire.com.
Industrial output slowed as well, with factories reporting weaker demand both at home and abroad. The long holiday period in October dented production, while global headwinds — including softer export orders — added to the pressure.
Economists warn that the combination of falling investment, weak consumption, and property market stress could derail China’s ability to meet its annual growth target of “around 5%.” While high-tech manufacturing and a widening trade surplus have provided some support, the overall outlook remains fragile China Briefing.
Beijing has pledged further stimulus, including infrastructure spending and targeted support for housing, but confidence among investors and households remains subdued. The October data underscores the scale of the challenge facing policymakers as they attempt to steer the world’s second-largest economy through a period of structural adjustment and global uncertainty.
China’s October slowdown highlights the growing risks of a prolonged property slump and weak consumer demand, raising doubts over whether stimulus measures can offset structural pressures in the months ahead.
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Sources: CNBC FastBull theglobalnewswire.com allaroundworlds.com China Briefing
