China’s retail sales rose by 3% in November from a year ago, missing the forecast of 4.6%, according to data released by the National Bureau of Statistics. The decline marked a sharp slowdown from the previous month, which saw growth of 4.8%.
The slump in real estate investment continued to deepen, shrinking by 10.4% from a year ago. This follows a 10.3% decline reported in the January to October period.
Consumer confidence has been hit by a prolonged property downturn, local government debt risks, and high unemployment. Economists say that while recent economic data shows a fragile but upward momentum, it is unlikely to translate into strong consumption sentiment due to falling home prices.
Industrial production rose by 5.4% from a year ago in November, above expectations of 5.3%. Fixed asset investment, however, missed the forecast of 3.4%, rising by 3.3% this year through November.
Despite overall consumption slump, some sectors such as home appliances and audio-visual equipment saw growth in sales. The urban unemployment rate remained at 5% in November, with a record-high youth jobless rate of 17.6%.
Chinese authorities have signaled heightened urgency to shore up the economy, with plans to implement “proactive fiscal tools” and “moderately loose” monetary policies next year. However, more specifics on these measures are expected to be unveiled at the annual legislative sessions in March.
The latest economic data suggests that deflationary pressures continue to plague the flagging economy, with consumer inflation falling to a five-month low in November. Imports declined 3.9% amid sluggish consumer demand, while exports rose by smaller-than-expected 6.7%.
Source: https://www.cnbc.com/2024/12/16/chinas-november-retail-sales-miss-expectations-as-economic-woes-deepen.html