China’s Economy Stumbles After Unprecedented Slump in Investment

China’s economic activity cooled more than expected at the start of the fourth quarter, with an unprecedented slump in investment and slower growth in industrial output adding to a drag from sluggish consumption.

Fixed-asset investment shrank 1.7% in the first 10 months of the year, a record decline for the period, according to data released by the National Bureau of Statistics on Friday. Bloomberg Economics estimates investment dropped as much as 12% in October, extending its streak of declines into a fifth straight month.

Industrial production climbed 4.9% last month from a year earlier, the smallest gain since the start ...