China’s industrial engine rebounded strongly last month, amid surprisingly good economic numbers
- Industrial production, which measures China’s industrial output, including manufacturing, mining and utilities, grew by 6.2 per cent in November
- Retail sales also performed better than expected, as the Chinese economy surprised on the upside in the last month before a trade deal was reached
China’s industrial economy rebounded strongly in November, in the last month before a trade deal was reached with the United States that will provide some well-needed tariff relief.
This was well above a poll of analysts quizzed by Bloomberg, which had forecast 5.0 per cent growth. It was the highest growth since June.
Retail sales, a key measure of consumption in the world’s most populous nation, grew by 8.0 per cent in November, up from 7.2 per cent in October and again higher than the Bloomberg poll, which expected 7.6 per cent growth.
“Downward pressure on growth is likely to resurface before long,” said Martin Lynge Rasmussen, a China economist at Capital Economics. “Admittedly, the phase one US-China trade deal could boost both export activity and corporate investment in the near term. But real estate, a key prop to growth in recent quarters, is primed for a moderation as financing to the sector is being squeezed by a regulatory crackdown.”