China Economic Data Offers Mixed Picture
15 Diciembre 2024 - 7:43PM
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China's official data painted a mixed picture for growth in
November as industrial production posted a faster expansion and
house prices fell at slower pace, while retail sales growth
softened highlighting the need for additional stimulus to retain
sustainable growth.
Industrial production expanded 5.4 percent from the previous
year, which was slightly faster than the 5.3 percent increase in
October, data from the National Bureau of Statistics revealed
Monday. The rate came in line with expectations.
By contrast, retail sales growth weakened more-than-expected to
3.0 percent in November from 4.8 percent in October. Growth was
seen at 4.6 percent.
During January to November, fixed asset investment showed an
increase of 3.3 percent from the previous year. This was slightly
weaker than the 3.4 percent expansion posted during January to
October.
The NBS said the job market remained generally stable in the
first eleven months of 2024. The unemployment rate remained
unchanged at 5.0 percent in November. Further, the statistical
office said the fall in commercial residential homes in 70 large
and medium-sized cities decreased at a slower pace in November.
The deceleration in November will probably prove temporary with
growth likely to pick up again over the coming months as policy
support continues to be stepped up, economists at Capital
Economics.
Nonetheless, economists said they doubt that stimulus can
deliver anything more than a short-lived improvement, not least
because the current strength of export demand is unlikely to last
once President Trump starts to put some of his tariff threats into
action.
Although the overall activity data unsurprisingly remained
sluggish, it provided a positive signal that the property market
could be bottoming out, ING economist Lynn Song said. With only one
month of data still to come, China will likely manage to complete
its "around 5%" growth objective for 2024, the economist added.
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