The world's second-largest economy is facing a series of headwinds including protracted Covid-19 curbs, global recession risks and a property downturn.
"October activity growth broadly slowed and missed market expectations, pointing to a weak start to Q4 as a worsening Covid situation, prolonged property downturn and slower export growth more than offset continued policy stimulus," Goldman Sachs analysts said. Sales dropped 0.5% compared to expectations for a 1% rise and compared with a 2.5% gain in September.
Domestic Covid containment measures were placing a"huge" pressure on the economy, said NBS spokesperson Fu Linghui, adding that downside risks from the global economy were rising. "With exports cooling, the property sector still in the doldrums and the zero-COVID policy likely to remain in place longer than many hope, the near-term outlook is gloomy."
China's property sector has slowed sharply as the government has sought to restrict excessive borrowing. A plan to shore up liquidity outlined by Chinese regulators on Sunday sent Chinese property stocks and bonds soaring on Monday.