China’s economy grows 4.8% in third quarter as expected, but investment sees 'rare and alarming' drop

BEIJING — China's economy expanded by 4.8% in the third quarter from a year ago, matching analyst predictions despite the ongoing real estate slump.

Fixed-asset investment, which includes real estate, unexpectedly contracted 0.5% in the first nine months of the year as investment into infrastructure and manufacturing slowed. Analysts polled by Reuters had forecast a 0.1% growth.

Property investment extended its decline, sliding 13.9% in the year through September, compared with a 12.9% drop during the first eight months of the year.

The drop in fixed-asset investment is "rare and alarming," Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note. He warned that fourth-quarter GDP growth faces downward pressure.

The last time China recorded a contraction