China's economy grew 4.5% compared to the previous year in the July-to-September quarter, exceeding forecasts because strong exports balanced out weak domestic spending and an ongoing housing downturn.
The National Bureau of Statistics reported on Monday that economic growth speeded up from 4.3% in the previous quarter. Expansion in that prior quarter had dropped to its slowest rate in more than three years. The latest figure beat economists' forecast of 4.4% and brought overall growth for the first nine months of 2026 to 4.6%.
Exports, including technology products such as semiconductors, helped support economic activity during a global rise in artificial intelligence investment. However, the strong exports have not created a widespread economic recovery at home. Cautious consumers and a lasting property slump continue to hold back domestic demand.
Retail sales in September rose 1.1% from a year earlier, while industrial factory output increased by 5.5%. Across the January-to-September period, investment in fixed assets dropped by 7.2%. The results keep China on track to reach its 2026 economic growth target of 4.5% to 5%.
They also show how much the economy relies on foreign buyers while local spending and investment stay weak.