China’s November retail sales fall short of expectations, real estate decline intensifies | Wilnesh News

Data show that China’s total retail sales of consumer goods increased by 3% year-on-year in November National Bureau of Statistics The data released on Monday was below the 4.6% forecast in a Reuters poll.

That marked a sharp slowdown from last month’s 4.8% growth. Retail sales hit record high in October Growth since Februarydue to the annual Double Eleven shopping festival, which starts more than a week earlier than the 2023 event.

Real estate investment decline deepens from January to November An annual decrease of 10.4%This follows a 10.3% decline between January and October.

Industrial production in November An increase of 5.4% compared with the same period last yearhigher than the 5.3% growth expected by economists polled by Reuters, accelerating from the 5.3% growth last month.

Since the beginning of this year, the world’s second largest economy has been facing pressure from many aspects. Consumer and business confidence have been hit by a prolonged housing downturn, local government debt risks and high unemployment.

Fixed asset investment, reported year-to-date, rUp 3.3% this year through November On an annual basis, it was below the forecast of 3.4%. From January to October, the number grew 3.4%.

this Urban unemployment rate remains at 5% The proportion of the population aged 16 and over remained the same as in October.

Chinese authorities typically release a separate set of unemployment rates for people aged 16 to 24, excluding students, days after the release of the broader unemployment rate. Youth unemployment remains high, at 17.1% in October and 17.6% in September. August hit a record high of 18.8%.

Last week, at At a high-level economic policy meeting, China’s leaders signaled greater urgency to shore up the struggling economy, while shifting national policy focus to boosting consumption as Beijing prepares for a possible escalation in trade tensions with the United States.

Senior officials vowed to implement “active fiscal tools” and “moderately loose” monetary policy next year, and “vigorously” boost domestic consumption to stimulate demand “all-round”. state-run Xinhua News Agency.

This is the first time since 2008, at the height of the global financial crisis, that Beijing has acknowledged that its monetary policy should be looser.

Since late September, Beijing has stepped up stimulus efforts, including multiple interest rate cuts and easing home-buying rules, to boost its faltering economy. On the fiscal front, the Ministry of Finance unveiled a five-year 10 trillion yuan ($1.4 trillion) plan in November to address local government debt problemss.

Still, China’s latest economic data highlighted persistent deflation in a weak economy.

Consumer inflation fell to a five-month low in November, with retail prices rising slightly by 0.2% from a year earlier. China’s producer price index continued its downward trend, falling for 26 consecutive months.

Due to sluggish consumer demand, the country’s imports fell by 3.9%, the largest decline since September 2023, while exports grew by 6.7%, lower than expected.

Apart from trade-in programs to boost sales of cars and appliances, the stimulus measures Beijing has announced so far do not directly target consumption.

While last week’s economic planning session provided broad policy priorities and direction for next year, more details and details will only be released during the annual legislative session in March.

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