China's third-quarter economic growth quickens to 4.5% as exports surge, beating estimates

China's economic growth accelerated to 4.5% in the third quarter from a year earlier, as foreign demand for the country's technological goods largely offset a deepening property slump and sluggish consumer demand.

That compares with a 4.4% expansion forecast among economists polled by Reuters and the three-year low of 4.3% in the second quarter.

The data shows an economy still leaning on factories and overseas buyers while households and private investors hold back. Growth through the first nine months averaged 4.6%, near the lower end of Beijing's official target range of 4.5% to 5%.

For the first nine months this year, fixed asset investment in urban areas deepened declines, falling 7.2% from the same period a year earlier, compared with a 7.3% drop in Reuters poll.

In September, retail sales eked out a 1.1% growth, exceeding analysts' forecast for 0.6% increase, while industrial output grew 5.5% from a year earlier, in line with the forecast of 5.5% growth.

The urban unemployment rate stood at 5.2% in September.

Beijing has leaned heavily on exports for growth this year, but that engine faces growing pressure as investment in AI-related sectors cools and trade tensions with the European Union escalate.

Chinese authorities have stepped up policy support, including a package of targeted rate cuts and mortgage subsidies in late September. In early October, it also allocated 550 billion yuan of unused debt quota to local governments.

Economists largely expect the People's Bank of China to hold benchmark lending rates unchanged through this year, leaving fiscal measures to do most of the work.

Correction: This story has been revised to reflect that quarterly GDP growth was 4.5%.