(Nov 13): China’s economic slowdown deepened in October as industrial output growth and fixed-asset investment trailed estimates, adding to pressure on policy makers to step up stimulus efforts.

Factory production rose 7.7 percent from a year earlier, the National Bureau of Statistics said in Beijing, compared with the 8 percent median estimate in a Bloomberg News survey and the second smallest rise since 2009. Retail sales gained 11.5 percent and fixed-asset investment in January through October increased 15.9 percent, the slowest pace since 2001.

The government has refrained from across-the-board interest rate cuts, instead adding liquidity and accelerating spending plans as the nation heads for the slowest full-year expansion since 1990. Leaders have discussed lowering the 2015 economic- growth target from this year’s 7.5 percent aspiration, according to a person with knowledge of the talks.

“The data highlights downward pressure on the mainland economy,” said Dariusz Kowalczyk, senior economist at Credit Agricole SA in Hong Kong. “It will encourage further monetary easing.”

Growth in retail sales compared with the 11.6 percent median projection of analysts surveyed by Bloomberg. The median estimate for expansion in January through October fixed-asset investment excluding rural households was 16 percent.

Factory gate prices fell 2.2 percent in October, a record 32nd straight decline, data this month showed. Factory output in November may be weighed by restrictions on pollution-intensive industries and construction in Beijing and five surrounding provinces, as the government sought cleaner skies for the Asia- Pacific Economic Cooperation forum.

Target Cut

The central leading group for financial and economic affairs discussed growth targets including 7 percent, 7.3 percent, and below 7.5 percent, said the person, who asked not to be named because the discussions are private. The figure hasn’t been decided on, the person said. The State Council Information Office didn’t immediately respond to faxed questions seeking comment.

A slower expansion goal would offer more room to push structural changes aimed at lowering financial risks and reducing overcapacity. While GDP targets have historically been used as a baseline which the nation surpassed, that has changed this year with policy makers refraining from broad stimulus.

The People’s Bank of China is inviting selected city commercial banks in some provinces, including Jiangsu and Zhejiang, to apply for cash injections, according to an official with knowledge of the matter. The PBOC didn’t immediately respond to a fax seeking comment or a telephone inquiry.

A survey of economists by Bloomberg News last month showed an expectation for a 2015 growth target of about 7 percent.

Property Development

Property development investment in January through October gained 12.4 percent from the same period a year ago, the NBS said today. Property sales by value fell 7.9 percent in the period with residential transactions tumbling 9.9 percent.

In manufacturing, the metals industry fared particularly poorly, with categories including smelting and processing seeing declining growth in October.

“Industrial production will remain at a slow pace” and will probably fluctuate between 7 percent and 8 percent gains for the rest of this year, said Tao Dong, chief regional economist for Asia excluding Japan at Credit Suisse Group AG in Hong Kong. ’’If you want to ask where China’s investment is, the overall pace is weak.’’