On Saturday, China released industrial production, urban fixed asset investment and retail sales figures for November, providing the latest snapshot on the state of the economy’s enormous transition away from investment and production led growth to that powered by consumption and services.
Here’s the state of play.
- All three indicators beat expectations in November. Industrial production and urban fixed asset investment, having decelerated for most of the year, provided the surprise packet in November.
- From a year earlier, industrial production rose by 6.2%, far stronger than the 5.6% rate seen in October. The figure beat expectations for growth of 5.6% and marked the fastest acceleration seen since June this year.
- Urban fixed asset investment grew by 10.2% over the same time period, still the equal lowest level seen since 2000, although it beat forecasts for a deceleration to 10.1%.
- Retail sales grew by 11.2%, topping the 11.0% pace recorded in October and expectations for an acceleration to 11.1%. The figure marked the fastest annual growth since December last year, fitting with the theme that China’s economic rebalancing is gaining traction.
- The trio of data beats led Commsec’s chief economist Craig James to declare that “the doomsayers will need to find another target“, noting that “Improved growth in the global economy and stimulus measures at home have served to lift economic activity in China.”