China industrial output steps up in November as recovery gathers pace

BEIJING (REUTERS) – China’s industrial output grew in line with expectations in November, expanding for the eighth straight month as the economic recovery gathered pace and global demand picked up.

Industrial output growth quickened to 7 per cent in November from a year earlier, data from the National Statistics Bureau showed on Tuesday (Dec 15). That was in line with analyst expectations in a Reuters poll and faster than the 6.9 per cent expansion in October.

China’s economy has staged an impressive recovery from its Covid-19 paralysis earlier this year, mainly driven by robust exports.

An annual sales promotion extravaganza in November by China’s e-commerce giants has also open consumers’ wallets in a further boost to orders for small factories.

Retail sales rose 5 per cent on-year, just missing analysts’ forecast for 5.2 per cent growth but faster than the 4.3 per cent increase in October.

Auto sales saw 11.8 per cent growth and sales of household appliances grew 5.1 per cent in November. Communications equipment sales jumped by 43.6 per cent.

Fixed-asset investment rose 2.6 per cent in January-November from the same period last year, in line with a forecast 2.6 per cent growth and faster than a 1.8 per cent increase in the first 10 months of 2020.

Private sector fixed-asset investment, which accounts for 60 per cent of total investment, rose 0.2 per cent in January-November, compared with a 0.7 per cent decline in the first 10 months of the year.

China’s economic recovery looks to be accelerating in the fourth quarter, driven by stronger demand, credit growth and stimulus measures expected to provide a strong tailwind into 2021.

Factory activity growth hit a more than-three-year high in November, an official survey showed, as fewer COVID-19 infections boosted consumer confidence.

Exports also surged at their fastest pace in almost three years thanks to hot demand for personal protective equipment and electronics products for working from home.

However, tougher measures to contain the coronavirus imposed by the country’s trading partners have created shipping bottle necks, pushing up transportation costs and capping the speed of China’s recovery.

Sign up for our daily updates here and get the latest news delivered to your inbox.

Get The Straits Times app and receive breaking news alerts and more. Download from the Apple App Store or Google Play Store now.

Source: Read Full Article