Pictured here is a Shanghai development under construction on Nov. 4, 2024. China reported significant boosts in retail sales and a sharp drop in real estate investment for October, indicating that recent economic stimulus efforts have positively impacted specific sectors. Retail sales saw a 4.8% year-on-year increase, surpassing the 3.8% predicted in a Reuters poll, and improving from September’s 3.2% rise. Industrial production grew 5.3% year-on-year, below the expected 5.6% growth. Fixed asset investment rose by 3.4% on a year-to-date basis, slightly under the 3.5% forecast.
Real estate investment fell by 10.3% from the previous year during January to October, worsening from a 10.1% decrease seen in the prior month. This represents the most significant decline since August 2021. Meanwhile, infrastructure and manufacturing investments showed slight improvement, with urban unemployment declining to 5% from 5.1% in September.
According to the National Bureau of Statistics, these improvements are due to enhanced existing policies and new measures introduced in October. However, the bureau cautioned against ongoing domestic and international challenges, urging stronger policy implementation to meet annual growth targets. Since late September, Chinese authorities have intensified stimulus activities, including central bank interest rate cuts and continuation of real estate support measures. The Ministry of Finance announced a five-year, 10 trillion yuan ($1.4 trillion) initiative to tackle local government debt and hinted at future fiscal support.
Despite a surge in exports, domestic demand remained weak with import declines. October’s core consumer price index rose by 0.2%, marginally better than September’s 0.1% increase. While stimulus measures have not directly targeted consumers, the Singles Day shopping festival exceeded expectations, despite cautious consumer spending during China’s Golden Week. China’s GDP grew by 4.8% in the first three quarters, aiming for around 5% growth by year-end.
Original Story https://www.cnbc.com/2024/11/15/china-set-to-report-retail-sales-and-industrial-production-data-for-october.html
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