China's Economy Slows in November as Property Slump Deepens - BNN

(Bloomberg) -- China’s economy slowed further in November, dragged down by a worsening property market slump and disruptions from repeated Covid outbreaks.

Industrial output rose 3.8% from a year earlier, quickening from 3.5% in October and above 3.7% projected by economists. Retail sales growth weakened to 3.9%, missing economists’ forecasts of a 4.7% gain. 

Growth in fixed-asset investment eased to 5.2% in the first eleven months of the year. Property investment grew by 6% in the same period, slowing from 7.2% during the January-October period, as financing rules remained strict and home sales plunged amid weak sentiment. 

The surveyed jobless rate inched up to 5%.

Read More: China Home Market Slump Deepens as Prices Fall for Third Month

The data highlights the downward pressure on the economy from the real-estate sector and the scale of the challenge facing the Chinese government in stabilizing the world’s second-largest economy. While Beijing is expected to make more credit available and signaled some easing of controls on the property market to support “stability,” officials last week maintained the basic stance that “houses are for living in, not speculation.” 

Infrastructure investment, another weak link in China’s slow recovery this year, rose at a slower pace of 0.5%. Local governments have stepped up efforts to borrow money and start new projects and Beijing has allowed authorities to start selling next year’s bonds from Jan. 1 to speed up spending. 

Consumption weakened despite support from still strong sales around the “Singles Day” shopping festival, which didn’t help offset the impact of the outbreaks of Covid-19 on consumption of services, restaurant and catering sales, and purchases at physical shops. 

The economy’s slowdown has prompted Beijing to shift its focus to stabilizing growth, with the central bank easing monetary policy and the Communist Party ordering more fiscal spending in 2022. Local governments have been urged to speed up spending, while continuing to keep debt under control. 

©2021 Bloomberg L.P.

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China's Economy Slows in November as Property Slump Deepens - BNN
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