China’s Economic Slowdown Deepens Amid Investment Slump and Housing Crisis

China’s economy stumbled into the fourth quarter as fixed-asset investment plummeted 1.7% in the first ten months of the year—the steepest decline in decades. October alone saw an estimated 11% collapse, underscoring eroding business confidence. The downturn spans manufacturing, infrastructure, and most critically, a property sector that shows no signs of recovery.

Corporate capital expenditure has stalled amid weak domestic and foreign demand, with even state-owned enterprises pulling back. Beijing’s campaign to reduce industrial overcapacity has further dampened spending. Foreign direct investment continues to contract, compounding pressure on an economy struggling to regain its early-year momentum.

The housing market remains a critical weak point. October home prices fell 0.5% month-over-month and over 2% annually, as developers slash prices to sustain sales. Households, wary of job security and stagnant incomes, are avoiding new mortgage commitments. This protracted real estate slump now drags on both consumer sentiment and broader economic activity.