The National Bureau of Statistics of China said that industrial output grew 5.4% year-on-year in November, slightly surpassing October's 5.3% and exceeding expectations (+5.3%). However, retail sales, a key measure of consumption, disappointed with a 3.0% increase, down from 4.8% in October, despite shopping promotions and government incentives. Economists had expected a 4.6% increase. Fixed asset investment grew by 3.3% in the first 11 months, slightly missing forecasts (+3.4%).
The data highlights persistent challenges for China's economy, which is bracing for potential U.S. trade tariffs under President Trump’s second term and grappling with weak domestic demand. At last week's Central Economic Work Conference (CEWC), China’s leaders emphasized boosting consumption, raising the budget deficit, and maintaining a loose monetary policy—the first such shift in 14 years.
Meanwhile, China’s property market showed some stabilization, with new home prices falling just 0.1% month-on-month in November, the slowest decline in 17 months, after a 0.5% dip in October. In annual terms, new home prices fell 5.7% after a 5.9% drop the previous month.
Policymakers have intensified efforts to revive the sector through measures like cutting mortgage rates, reducing down-payment requirements, and offering tax incentives. As Beijing aims for a 2025 growth target of around 5%, strong stimulus measures will be critical to counter domestic weaknesses and external trade risks.