Fashion

Retail continues to grow in China despite economic challenges


China enjoyed a better-than-expected pick-up
in the key retail and industrial sectors in November, data showed Monday,
providing a further boost to Beijing after finally agreeing a mini trade
pact
with the United States last week.

The readings come at the end of a tough year for the world’s number two
economy, which is expanding at its weakest rate for three decades as it is
buffeted by the long-running trade war with Washington as well as a slowdown
in global demand for its goods.

Industrial production increased 6.2 percent on-year last month, up from
4.7
percent in October and the best reading in six months.
There was also positive news for the country’s shops, with retail sales
up
8.0 percent, compared with a 7.2 percent rise the month before.

The figures exceeded expectations, with analysts surveyed by Bloomberg
predicting just 5.0 percent growth in industrial production and 7.6 percent
in
retail sales.

Fu Linghui, spokesman at the National Bureau of Statistics, said the key
economic indicators “performed better than expected” in the “face of
mounting
risks and challenges both at home and abroad”.
But he warned there was still “downward pressure” on the Chinese economy
owing to “increasing external instabilities and uncertainties”.

Singles’ Day spending spree boosts retail growth in November

Investment in fixed capital was up 5.2 percent, the same as October and
in
line with predictions.
In November, Chinese shoppers set new records for spending during the
annual “Singles’ Day” buying spree, with e-commerce giant Alibaba saying
consumers spent 38.3 billion US dollars on its platforms during the world’s
biggest
24-hour shopping event.

The figure was up 26 percent from the previous all-time high set last
year.
China’s economy is in an extended slowdown and the Singles’ Day fire sale
is viewed as a snapshot of consumer sentiment.
Economic growth slowed to six percent in the third quarter — the most
sluggish rate since 1990 — as demand for exports cooled and Chinese
consumers
tightened their belts.

Fu said Beijing was on track to meet its full-year growth target of
6.0-6.5
percent for 2019, but “must also acknowledge that the current international
environment is still relatively complicated”.
The partial trade deal had “reduced market uncertainty”, he said.
But analysts said Monday’s strong data was not necessarily a sign of
long-lasting growth.

“We think this uptick will prove short-lived,” said Martin Lynge
Rasmussen,
China economist at Capital Economics, warning of the impact of a squeeze on
financing in the important real-estate sector.
“Downward pressure on growth is likely to resurface before long,” he
added.(AFP)



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