China’s Factory Output, Retail Sales Weaken in November

China’s factory output and retail sales growth slowed further in November, weighed by weak domestic demand and adding pressure on policymakers to take action to rebalance the $19 trillion economy, as trading partners take issue with its huge surplus, Reuters reported.

Government advisers and analysts say China is likely to pursue its current annual growth target of around 5% next year. (Photo: Xinhua) 

Industrial output rose 4.8% year-on-year, National Bureau of Statistics (NBS) data showed Monday, slowing from 4.9% growth in October. The figure missed a 5.0% increase forecast in a Reuters poll.

Retail sales, a gauge of consumption, grew 1.3% after rising 2.9% in October, lagging forecasts for a 2.8% gain.

Signs of fragile consumer demand have been mounting. Annual car sales slumped 8.5% in November, the steepest decline in 10 months, dimming hopes for a year-end rebound in an industry that normally sees strong sales in the final two months of the year.

Even the Singles’ Day shopping festival — which stretched to five weeks this year by major e-commerce platforms to drum up sales — failed to excite consumers.

Fixed-asset investment shrank 1.3% in January–November compared with the same period last year, after a 1.7% decline in January–October. Economists had expected a 2.3% drop.

Government advisers and analysts say China is likely to pursue its current annual growth target of around 5% next year as it seeks to kick-start a new five-year plan on a strong footing.