National Bureau of Statistics’ official data reads that China’s economic performance improved last month as beating earlier forecasts. Nomura’s Chinese economist , Lu Ting explains how the country’s economic data were rather surprising.
The third highest climb was made by the industrial production scored over 6% in November while retail sales growth soared to 8%.
Major industrial enterprises posted added value while industrial output growth in utilities section peaked at almost 7% . High technology output industry grew to almost 9% indicating continuous optimization of the industrial structure. In addition, the equipment manufacturing industry posted added value increasing by almost 9%.
Fixed asset investment remained at 5.2 percent year on year in November.
Meanwhile, the auto manufacturing industry continued its rebound since last month, growing to almost 8% from last month’s performance. The bureau’s senior statistician, Jiang Yuan revealed that this year’s industrial production growth is quite remarkable so as not to forget last year’s was quite the opposite for the section.
Furthermore, Jiang attributes this increase to various factors such as the current external environment still being complicated. Secondly, the structural contradictions of the domestic economy are prevalent. Finally, the downward pressure on industrial production still exists.
Stronger auto and oil product sales lead headline sales growth rebound.
From a negative 4.5% in October, sales growth of oil and oil products rebounded to 0.5% in November mainly driven by a strong rebound in oil price inflation. Brent oil price inflation jumped to -1.8% in November from -25.7% in October.
Meanwhile China Passenger Car Association reported a 1.8% drop from auto sales this month from October’s 3.3% slump while headline fixed asset investment growth remained at 5.2% this month.
Lu attributes rise in FAI growth being driven by stronger infrastructure development. Growth of infrastructure investment picked up to 5.2% in November while manufacturing investment slowed to 1.6% in November.
Meanwhile growth in property investment weakened to 8.4% in November while growth in high-tech industry investment peaked at 14%. Expansion in the service sector scored almost 7% increase in November.
Moreover, information transmission, software and information technology services grew by 16% while the leasing and business services industry rose 12%, outdoing overall service sector growth.
To sum up, China’s foreign trade totalled to US$408.75 billion scoring close to 2% from last year’s data while export growth increased 1.3% alongside imports data, rebounding at almost 3%.
