China's industrial, retail data beats expectations in November, Latest Business News - The New Paper

China's industrial, retail data beats expectations in November

This article is more than 12 months old

BEIJING: China enjoyed a better-than-expected pickup in the key retail and industrial sectors in November, data showed yesterday, providing a further boost to Beijing after finally agreeing a mini trade pact with the US last week.

The readings come at the end of a tough year for the world's number two economy.

Industrial production increased 6.2 per cent on-year last month, up from 4.7 per cent in October and the best reading in six months.

There was also positive news for the country's shops, with retail sales up 8 per cent, compared with a 7.2 per cent rise the month before.

The figures exceeded expectations, with analysts surveyed by Bloomberg predicting just 5 per cent growth in industrial production and 7.6 per cent in retail sales.

Mr Fu Linghui, spokesman at the National Bureau of Statistics, said the key economic indicators "performed better than expected".

But he warned there was still "downward pressure" on the Chinese economy owing to "increasing external instabilities and uncertainties".

Analysts said yesterday's strong data may not be a sign of long-lasting growth.

"We think this uptick will prove short-lived," said Capital Economics China economist Martin Lynge Rasmussen, warning of the impact of a squeeze on financing in the important real estate sector.

"Downward pressure on growth is likely to resurface before long." - AFP