China industrial production, retail sales disappoint in November

Read Time:1 Minute, 53 Second

By Ambar Warrick

Investing.com – The Chinese retail sales and industrial production were well below expectations in November according to data released on Thursday. This was due to rising COVID-19 incidences and tighter restrictions to stop the virus from affecting the economy.

Retail sales They were the biggest disappointment, falling 5.9% in November after contracting 0.5% in October. The market was expecting a contraction in the region of 3.7%.

Given that retail spending is the key driver of economic expansion, this reading does not bode well for the Chinese economy during the fourth quarter.

Retail sales Also, this was their largest drop since May when the country was still battling a serious COVID-19 virus outbreak. This drop resulted in negative cumulative retail sales for the entire year.

Separate data showed industrial production The November growth rate was 2.2%, which is less than the October growth of 5% and far below the 3.6% growth forecast. COVID-19 lockdowns were particularly harsh on the manufacturing sector, with several industrial hubs like Shanghai and Wuhan imposing stringent restrictions to prevent spread of the virus.

November saw industrial production also be affected by civil unrest at several hubs. Workers protested against anti-COVID measures that would have made them isolated from their factories.

Other data also showed growing cracks within the Chinese economy. Fixed asset investment In November, the growth rate was lower than expected. house prices Continued to fall steadily

These data show that the Chinese economy is facing a difficult fourth quarter despite the fact that the government has relaxed its anti-COVID measures throughout the country since December.

Over the past week, there was a sharp increase in COVID-related cases. In fact, the government declared that it is impossible to track the actual number of infections. The uncertainty surrounding a Chinese economic recovery and concerns about the health of the country’s healthcare system led to further concern.

China still saw an increase in air and road transport activity in December. This indicates that some sectors of the economy are benefiting from the relaxed anti COVID measures.

Similar Articles

China industrial production, retail sales disappoint in November

Australia employment grows more than expected in November

Japan’s trade deficit shrinks less than expected in November

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
Previous post US Senate approves bill banning TikTok from government devices
Next post FTSE 100 is lower than Bank of England interest rate decision