China’s economy grew 4.8% in Q3, with fixed-asset investment dropping 0.5% in the first nine months due to a slowdown in infrastructure and manufacturing spending. Property investment fell 13.9%, raising concerns of a long-term decline in investment levels, impacting GDP growth.

Industrial production rose 6.5% in September, exceeding expectations, but private sector investment outside real estate slowed to 2.1%. Modest consumer spending saw retail sales rise 3%, with home appliances sales up 3.3%, indicating a need to stabilize the housing market for domestic demand.

Disposable income for city residents increased by 4.5% in Q3, while rural residents saw a 6% rise. The urban unemployment rate fell to 5.2% in September. China’s exports remained resilient despite U.S. tensions, but headline inflation fell 0.3% as deflationary pressures persisted.

China’s leaders are meeting to discuss policy and development goals for the next five years, focusing on shifting towards domestic consumption and developing homegrown technology. Nomura Chief China Economist Ting Lu emphasizes the importance of the property sector, noting its significant contribution to GDP and local government revenue.

Read more at CNBC: China’s growth matches forecasts at 4.8% but investment sees ‘rare and alarming’ drop