China output and retail sales accelerate in Nov
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 on-year 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”. —AFP