China's economy picks up pace in Q3 as exports power uneven recovery

BEIJING — China's economy exhibited a stronger-than-anticipated performance in the third quarter, as a boost in exports and robust factory activity counterbalanced sluggish domestic demand, lessening the need for policymakers to introduce more aggressive stimulus measures. The National Bureau of Statistics (NBS) reported a 4.5% growth rate for the quarter, surpassing the forecast of 4.4% in a Reuters poll and marking an improvement from the multi-year low of 4.3% in the previous quarter.

The sharper growth was driven by a surge in exports, with China's trade surplus expanding beyond expectations in September, positioning the nation to surpass last year's record $1.2 trillion surplus. September activity data also suggested positive momentum. Retail sales increased by a better-than-expected 1.1% from a year ago, reflecting a faster pace of growth compared to August's 0.4% rise and the fastest expansion since March.

However, consumer spending remained subdued, underscoring the uneven character of the economic recovery. Industrial output expanded by 5.5% in September, up from 5.2% in August, marking the strongest pace since records began.