(NBS) China posted a 3.8% improvement in factory output in November from last year, a higher growth compared to the expected rise of 3.6% and October’s 3.5% gain.
Persistent headwinds, including property sector meltdowns and rising Covid-19 cases, weighed on China despite factory production increases.
Domestic consumption was weak in November, with the retail sales gaining by 3.9% from the prior year, lower than October’s 4.9% increase. The uptick in retail sales missed the expected 4.6% gain.
Fixed asset investment also missed estimated 5.4% growth during the January to November period by jumping 5.2%, below 6.1% in October.
Pinpoint Asset Management chief economist Zhiwei Zhang says the Chinese economy remained weak in November, with the central bank moving quickly to avert economic slowdown by injecting liquidity.
Growing concerns of the Omicron variant are also dampening China’s economic outlook, with at least a dozen of firms suspending production in Zhejiang province following new Covid-19 restrictions.
Nomura chief economist Ting Lu expects pressure on the Chinese economy to persist in the first half of next year, even as analysts project a below-4% GDP growth in the fourth quarter, down from the previous 4.9%.
CSI 300 is down -0.87%, USDCNY is down -0.03%.
