Chinese economic growth falters in November

(Sharecast News) - China's economic momentum weakened in November, official data showed on Monday, as retail sales faltered and factory output slowed. According to the National Bureau of Statistics, industrial output rose by 4.8%, down on last month's 4.9% increase and missing consensus for 5.0%. It was also the weakest pace of growth since August 2024.

Retail sales, meanwhile, strengthened just 1.3%, the weakest since December 2022, when Beijing finally ended its stringent pandemic restrictions. It was also well below forecasts for a repeat of October's 2.9% rise.

The house price index shed 2.4%, while fixed asset investment disappointed at -2.6%. Analysts had been expecting a 2.3% fall following October's 1.7% decline.

The unemployment rate was unchanged at 5.1%.

The Chinese economy has long-struggled to gain momentum following pandemic. It has been battered by numerous headwinds, including a slump in its once red-hot property sector, weak global demand and most recently the impact of tariffs.

In response, Beijing has looked to bolster economic activity through a package of stimuli.

However, Lynn Song, chief economist, Greater China, at ING, said: "Policymakers [have made it] clear that domestic demand-led growth is the priority moving forward. November's data showed that a lot of work remains for the scenario to play out successfully.

"This year's growth targets should still be on track, though a weak set of November data further pushes risk to the downside from our 5% year-on-year forecast."