China's factory growth weakens, retail sales stay strong

Staff Writer
Columbus CEO

BEIJING (AP) — China's factory output weakened in October while retail sales growth edged up, suggesting economic growth has yet to revive despite repeated interest rate cuts and other stimulus.

Data released Wednesday also showed investment in factories and other fixed assets weakened.

Retail sales grew 11 percent over a year earlier, up from September's 10.9 percent rate in a positive sign for Beijing's efforts to nurture growth based on consumer spending instead of trade and investment.

Factory output rose 5.6 percent, down from the previous month's 5.7 percent. Investment rose 10.2 percent in the first 10 months of the year, down from 10.3 percent in the first nine months.

Economic growth decelerated to a six-year low of 6.9 percent in the latest quarter despite six interest rate cuts since last November.