China's November industrial output, retail sales growth misses expectations

  • China's November industrial output, retail sales growth misses expectations

China's November industrial output, retail sales growth misses expectations

In contrast, China's November retail sales grew at their weakest pace since 2003 and industrial output rose the least in almost three years as the economy lost momentum amid the heated trade dispute between Beijing and the United States.

There will be sufficient favorable conditions for the economy in the next year, analysts said, citing the untapped potential of Chinese consumers.

Retail sales rose 8.1 percent in November - the weakest pace since 2003, according to Reuters' records - lower than the 8.8 percent the analysts expected.

High-tech manufacturing and equipment production sectors maintained fast expansion, with their output increasing 11.8 percent and 8.3 percent respectively last month.

Auto sales fell a sharp 10.0 per cent from a year earlier, in line with industry data showing sales dived 14 percent in November - the steepest drop in almost seven years. The slump was in line with data released by China's top auto industry association, which showed sales dived 14 per cent in November - the steepest drop in almost seven years.

China is faced with the double challenge of seeking to defuse ongoing trade tensions with the United States, while trying to manage a longer-term structural shift away from exports towards consumption as the main driver of growth.

Average new home prices in China's 70 major cities rose 0.9 percent in November from a month earlier, slower than the previous month's 1 percent and the weakest since September, Reuters calculations based on an official survey showed on Saturday.

November sales by floor area were 5.1 percent lower than a year earlier, according to Reuters calculations.

From headline NBS reporting, the Chinese stats bureau notes that China's economy remains "stable", and continues to make progress in November, with employment remaining better-than-expected, and despite "global changes", the Chinese economy remains within a reasonable range.

But China is on track to hit its 2018 economic growth target of around 6.5 percent, Mao told reporters.

"The latest data show an economy that is under pressure on both the external and domestic front, with policy efforts to shore up growth still falling short", said Julian Evans-Pritchard of Capital Economics.

Experts say consumers could be tightening their purse strings with expectations on a weaker economy this year, amid uncertainties such as the United States-China tariff war.

The number of newly-created jobs in urban areas reached 12.93 million for the January-November period, 130,000 more than the same period a year ago and surpassing the government's annual target of creating 11 million new urban jobs in 2018.

Indeed, even in the unlikely event the world's top two economies reach a durable resolution in their dispute, ebbing domestic demand, mounting household debt and a cooling real estate sector point to a further slowdown in growth next year.

"We expect this to trigger further policy easing, including cuts to benchmark lending rates".

The rate remained below the government's target of controlling the surveyed urban unemployment rate within 5.5 percent this year.

"Talking about the impact of Sino-US trade frictions - it may directly affect imports and exports, but so far the impact is not large", Mao said, adding that growth began to fall in November.