China out­put and re­tail sales ac­cel­er­ate in Nov

Kuwait Times - - BUSINESS -

BEIJING:

China’s in­dus­trial out­put and re­tail sales growth both ac­cel­er­ated in Novem­ber, gov­ern­ment data showed yes­ter­day, in a sign of sta­bi­liza­tion for the world’s sec­ond-largest econ­omy. In­dus­trial out­put rose 6.2 per­cent in the month, ahead of both Oc­to­ber’s fig­ures and econ­o­mists’ pre­dic­tions of 6.1 per­cent in a Bloomberg News sur­vey.

Re­tail sales rose 10.8 per­cent onyear in nom­i­nal terms, up from 10.0 per­cent in Oc­to­ber, while fixed-as­set in­vest­ment, a gauge of in­fra­struc­ture spend­ing, rose 8.3 per­cent in the first 11 months of the year, the Na­tional Bureau of Statis­tics (NBS) said. China is a key driver of the world econ­omy but its ex­pan­sion has slowed sig­nif­i­cantly from the dou­ble-digit years of the past.

Now Beijing is seek­ing to make a dif­fi­cult tran­si­tion away from its de­pen­dence on ex­ports and heavy in­dus­try to­wards con­sump­tion as the en­gine of the econ­omy. Af­ter a bumpy start to the year it has shown re­silience in the last quar­ter, aided by am­ple credit poli­cies and the weak­en­ing of the yuan cur­rency, mak­ing Chi­nese goods cheaper to buy for over­seas cus­tomers.

To­tal re­tail sales reached 3.1 tril­lion yuan ($450 bil­lion) in the month, boosted by the an­nual “Sin­gles Day” on­line sales pro­mo­tions for Novem­ber 11. To­gether the data show that China’s re­cov­ery “re­mains in­tact head­ing into 2017”, Julian Evans-Pritchard of Cap­i­tal Eco­nomics said in a note.

But as credit growth has cooled and the red-hot prop­erty sec­tor faces a cor­rec­tion, the econ­omy is likely to be­gin slow­ing again next year, he added. And the out­look for China’s per­for­mance is clouded by uncer­tainty over the com­ing US pres­i­dency of Don­ald Trump, who has promised to de­clare China a cur­rency ma­nip­u­la­tor and threat­ened to slap 45 per­cent puni­tive tar­iffs on im­ports from the coun­try to pro­tect Amer­i­can jobs.

In an in­ter­view broad­cast Sun­day Trump dou­bled down on tough rhetoric to­ward Beijing, say­ing he did not see why the US must “be bound by a one China pol­icy un­less we make a deal with China hav­ing to do with other things, in­clud­ing trade”.

In a state­ment, NBS an­a­lyst Mao Shengy­ong de­scribed eco­nomic de­vel­op­ment as “steady and sound” in Novem­ber, cit­ing fac­tors in­clud­ing sup­ply-side struc­tural re­form, stim­u­lus poli­cies, and im­proved fac­tory ef­fi­ciency.

But he added: “We should be aware that do­mes­tic and ex­ter­nal con­di­tions are still com­pli­cated with a num­ber of un­sta­ble and un­cer­tain fac­tors.” In­vestors shrugged at the stronger-than-ex­pected re­sults, with Chi­nese stocks edg­ing down by the noon break. —AFP

HUAXIAN: This pic­ture taken on Mon­day shows a tex­tile worker at a fac­tory in Huaxian County, in China’s north­ern He­nan Prov­ince. China’s in­dus­trial out­put and re­tail sales growth both ac­cel­er­ated in Novem­ber, gov­ern­ment data showed yes­ter­day. —AFP

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