China last month saw a better-than-expected pickup in the key retail and industrial sectors, data showed yesterday, providing a further boost to Beijing after finally agreeing a partial trade pact with the US last week.
The readings came at the end of a tough year for the world’s No. 2 economy, which is expanding at its weakest rate for three decades as it is buffeted by the long-running trade spat with Washington as well as a slowdown in global demand for its products.
Industrial production increased 6.2 percent annually, 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 percent, compared with a 7.2 percent rise the month before.
The figures exceeded expectations, with analysts surveyed by Bloomberg predicting 5 percent growth in industrial production and 7.6 percent in retail sales.
Fu Linghui (傅令輝), spokesman at the Chinese 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.”
However, 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.
Last month, Chinese shoppers set new records for spending during the annual “Singles’ Day” buying spree, with e-commerce giant Alibaba Group Holding Ltd (阿里巴巴) saying that consumers spent US$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 6 percent in the third quarter as demand for exports cooled and Chinese tightened their belts.
Beijing was on track to meet its full-year growth target of 6 to 6.5 percent for this year, but “must also acknowledge that the current international environment is still relatively complicated,” Fu said.
The partial trade deal had “reduced market uncertainty,” he said.
However, analysts said yesterday’s strong data were 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 Ltd, warning of the effects of a squeeze on financing in the important real-estate sector.
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