China\u2019s economy regained momentum in Q3, with GDP up 1.2% quarter-on-quarter and 4.5% year-on-year, supported by robust exports and AI-related industrial demand, while household consumption remained soft. Industrial production growth was underpinned by external demand and tech-linked orders. Fixed-asset investment ended six straight months of month-on-month declines, helped by firmer manufacturing and infrastructure spending, even as consumption spending growth lagged disposable income growth.<\/p>\n\n
The bank kept its Q4 and full-year 2026 GDP growth forecasts unchanged at 4.7% and 4.6% respectively, pointing to recent policy moves such as a first-home interest subsidy programme and the use of accumulated unused local government debt quotas. <\/p>\n\n
On prices, it lowered its 2026 CPI forecast to 0.9% on weaker energy price transmission and ongoing food price deflation, but said elevated global oil and metal prices, together with higher costs for AI-related inputs and products, could lift PPI inflation above 3% this year.<\/p>\n\n\n\n