Retail sales in China surge 3 percent, less than market expectations

(MENAFN) China's retail sales rose by 3 percent in November compared to the same month last year, falling short of market expectations, which had predicted a 4.6 percent increase. This marks the slowest growth in three months, a significant decline from the 4.8 percent rise seen in October. The slowdown in retail sales was attributed to weaker demand for a range of products, including sports and entertainment items, daily necessities, household appliances, and audio-visual equipment, which all saw slower sales during the month.

On the other hand, China's industrial production showed some positive signs, rising by 5.4 percent year-on-year in November, slightly exceeding the market forecast of a 5.3 percent increase. This was an improvement from the 5.3 percent growth seen in October. The manufacturing sector led the charge, with a 6 percent increase in production, up from 5.4 percent the previous month. However, sectors such as electricity, heat, gas, water production, and supply, as well as mining, experienced slower growth, with increases of just 1.6 percent and 4.2 percent, respectively, compared to the previous month.

The real estate market continued to face challenges, with new home prices in 70 cities declining by 5.7 percent year-on-year in November. This marked the 17th consecutive month of falling prices. Prices fell sharply in major cities like Beijing, Guangzhou, and Shenzhen, while Shanghai saw a slight increase of 5 percent. The ongoing price decline reflects the continued weakness in the housing market.

In terms of fixed asset investment, the total increase for the year-to-date period from January through November was 3.3 percent, slightly below the anticipated 3.4 percent. This indicates a modest pace of investment growth, continuing the trend of slower economic recovery in certain sectors of the economy.

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