BEIJING- China’s factory output grew faster than expected in November, supported by stronger energy production and a moderation in raw materials prices, but retail sales slowed as new COVID-19 outbreaks hit the world’s second-largest economy.
The data, along with a slowdown in investment growth, underlined persistent headwinds facing the world’s second-largest, promoting policymakers to ratchet up support.
“The economy remained quite weak in November,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
“Domestic consumption weakened further, which is driven by the zero tolerance policy that hurts the service sector and the continued slowdown in the property sector.”
Factory output rose 3.8 percent in November from a year earlier, official data showed on Wednesday, beating expectations for a 3.6 percent rise and accelerating from a 3.5 percent increase in October.
Retail sales in November rose 3.9 percent from a year earlier, however, below the 4.6 percent growth expected in the poll and October’s 4.9 percent rise.
Fixed asset investment rose 5.2 percent in the first 11 months from the same period a year earlier, slower than the 5.4 percent increase tipped by a Reuters poll and the 6.1 percent in January-October.
China’s economy, which is losing steam after a solid recovery from the pandemic, faces multiple challenges heading into 2022, due to a property downturn and strict COVID-19 curbs that have hit consumer spending.
Some analysts expect fourth-quarter gross domestic product growth to dip below 4 percent from the 4.9 percent pace in the previous quarter, although the full-year growth could still be about 8 percent, above the official target of over 6 percent.
At a key agenda-setting meeting last week, China’s top leaders pledged to focus on stabilizing the economy and keeping growth within a reasonable range in 2022.
Signaling a sense of urgency, top leaders have also vowed to front-load stimulus next year ahead of the 20th Communist Party Congress, where key political leadership changes are likely to announced. – Reuters
