China’s economy delivered a mixed performance in November, with industrial sector growth speeding while consumption showed slowing momentum, reflecting a complex domestic economic landscape, data released by the National Bureau of Statistics revealed on Wednesday.
According to NBS data, China’s above-scale industrial added value surged by 3.8 percent in November, up 0.3 percentage point compared against the previous month.
The accelerating growth of the industrial sector has been in large part fueled by high-tech manufacturing. In November, the added value of high-tech manufacturing rose by 15.1 percent, up 0.4 percentage compared with October, NBS data showed.
Yang Chang, an economist at Zhongtai Securities, said in a note Zhongtai sent to the Global Times that signs are relatively clear that China’s industrial sector is continuing a path to full recovery, and industrial production is at a “high level with stable fluctuation.”
The trade sector also recorded stable growth. In November, China’s commodity exports and imports amounted to 3.72 trillion yuan ($584 billion), up 20.5 percent on a yearly basis, the NBS data showed. Growth has accelerated from the 17.8 percent recorded in October.
However, some sectors are facing slowing momentum, especially in the consumption sector. In November, China’s retail sales surged by 3.9 percent to 4.1 trillion yuan, although that figure was down 1 percentage point compared with October, failing to beat market expectation. In particular, revenues in food and dining fell by 2.7 percent, NBS data showed.
“Seen across a one-year period, China’s consumption has shown signs of weakening, but extending out to a two-year period, the consumption sector is still in a recovery phase,” Yang said.
According to Yang, as China’s real estate sector enters a new cycle, chances are consumption will improve, but the sector still requires further policy support.
NBS spokesperson Fu Linghui also said at a press conference on Wednesday that the level of contribution made by the consumption sector to economic growth has been gradually increasing over the year. In the first three quarters, domestic consumption contributed by more than 80 percent to China’s economic growth.
He also noted that China still holds significant untapped market potential, and that there are many positive factors boosting demand, and ultimately supporting the country’s economic growth.
Fu stressed that in general, China’s trend of long-term economic improvement has not changed. With the push of pandemic related control measures and China’s robust economic and social development, in addition to the targeted implementation of macro policy adjustment, China will hopefully achieve its target for 2021 economic growth target, he said.
China economy Photo: Xinhua
