Factory output in China grew more slowly in October, and retail sales declined in the latest indication the economy is losing momentum.

Property investment also fell at a quicker pace between January and October, signalling further weakness in a key part of China’s economy.

Retail sales dropped 0.5%, the first decline since May when Shanghai was in lockdown. Analysts had forecast retail sales to increase by 1.0%, a slowdown from a 2.5% gain in September.

This is the latest data to indicate a slowdown in China’s economy, Reuters reports, with recent figures also showing falling exports and slowing inflation.

The Chinese economy is facing several headwinds, such as its zero-Covid policy, a property slump and global recession risks. Market sentiment has been bolstered by the easing of certain Covid curbs and the financial support provided to the property market. However, analysts forecast the strict Covid policy will continue to impact economic activity.

Consumers have suffered the effects of the strict Covid restrictions as new lockdown curbs prevented travel and squeezed consumer confidence, whilst the government focused on boosting infrastructure investment.

Furthermore, fixed asset management grew 5.8% between January and October, compared to forecasts of a 5.9% increase and growth of 5.9% between January and September. In contrast, property investment edged down 8.8% year-on-year in the first 10 months of the year, following an 8% fall between January and September.

Hiring was still low within businesses that were becoming increasingly concerned about their finances. The jobless rate remained at 5.5% last month, the same figure as in September. Youth unemployment in China stood at 17.9% in October, also the same as the previous month. The country is on track to fall short of the yearly growth target of 5.5%, according to analysts. Economists surveyed by Reuters forecast the economy will grow 3.2% this month.