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CHINA-ECONOMY-RETAIL-PRODUCTION
China sees strong industrial, retail growth in November
BEIJING, Dec 16, 2019 (BSS/AFP) – China enjoyed a better-than-expected
pick-up in the key retail and industrial sectors in November, data showed
Monday, providing a further boost to Beijing after finally agreeing a mini
trade pact with the United States last week.
The readings come at the end of a tough year for the world’s number two
economy, which is expanding at its weakest rate for three decades as it is
buffeted by the long-running trade war with Washington as well as a slowdown
in global demand for its goods.
Industrial production increased 6.2 percent on-year last month, up from 4.7
percent in October and the best reading in six months.
There was also positive news for the country’s shops, with retail sales up
8.0 percent, compared with a 7.2 percent rise the month before. The figures
exceeded expectations, with analysts surveyed by Bloomberg predicting just
5.0 percent growth in industrial production and 7.6 percent in retail sales.
Fu Linghui, spokesman at the National Bureau of Statistics, said the key
economic indicators “performed better than expected” in the “face of mounting
risks and challenges both at home and abroad”.
But he warned there was still “downward pressure” on the Chinese economy
owing to “increasing external instabilities and uncertainties”.
Investment in fixed capital was up 5.2 percent, the same as October and in
line with predictions.
In November, Chinese shoppers set new records for spending during the
annual “Singles’ Day” buying spree, with e-commerce giant Alibaba saying
consumers spent $38.3 billion on its platforms during the world’s biggest 24-
hour shopping event.
The figure was up 26 percent from the previous all-time high set last year.
China’s economy is in an extended slowdown and the Singles’ Day fire sale
is viewed as a snapshot of consumer sentiment.
Economic growth slowed to six percent in the third quarter — the most
sluggish rate since 1990 — as demand for exports cooled and Chinese
consumers tightened their belts.
Fu said Beijing was on track to meet its full-year growth target of 6.0-6.5
percent for 2019, but “must also acknowledge that the current international
environment is still relatively complicated”.
The partial trade deal had “reduced market uncertainty”, he said.
But analysts said Monday’s strong data was not necessarily a sign of long-
lasting growth.
“We think this uptick will prove short-lived,” said Martin Lynge Rasmussen,
China economist at Capital Economics, warning of the impact of a squeeze on
financing in the important real-estate sector.
“Downward pressure on growth is likely to resurface before long,” he added.
BSS/AFP/RY/10:38 hrs