China's retail sales for November miss expectations as economic problems worsen

Retail sales in China rose 3% in November from a year ago, according to China's official Xinhua news agency. National Bureau of Statistics The data released on Monday came in below expectations of 4.6% in a Reuters poll.

This represents a sharp slowdown from 4.8% growth in the previous month. Retail sales in October recorded the fastest pace Growth since Februarywith the help of the annual Singles' Day shopping festival kicked off More than a week ago From the event in 2023.

November industrial production By 5.4% compared to last yearThat's higher than expectations for 5.3% growth among economists polled by Reuters, which also compares with a 5.3% rise the previous month.

The world's second-largest economy is facing pressure from multiple fronts this year. Consumer and business confidence have been hurt by a prolonged real estate downturn, local government debt risks and high unemployment rates.

Last week, in High-level economic policy meetingsChina's leadership has signaled an urgent need to support the faltering economy, while shifting the country's policy focus to boosting consumption as Beijing braces for a potential escalation in trade tensions with the United States.

Senior officials pledged to implement “proactive financial instruments” and “moderately loose” monetary policies next year, lift domestic consumption “strongly” and stimulate demand “on all fronts,” according to the European Central Bank. State-run Xinhua News Agency.

This was the first time Beijing admitted that its monetary policy should be loose since 2008. The depth of the global financial crisis In 2008.

Since late September, Beijing has stepped up stimulus announcements in an attempt to support the faltering economy, including several interest rate cuts and an easing of property purchase rules. On the financial level, the Ministry of Finance Unveiled 10 trillion yuan for five years ($1.4 trillion) in November to address the problem of local government debtQ.

However, the latest economic data out of China highlighted persistent deflationary pressures in the struggling economy.

Consumer inflation It fell to its lowest level in five months In November, with retail prices rising 0.2% compared to last year. China's producer price index continued its downward trend, falling for the twenty-sixth month in a row.

The country Imports decreased by 3.9% Amid a slowdown in consumer demand, representing the largest decline since September 2023, while exports rose by a smaller-than-expected 6.7%.

Aside from the trade-in program to stimulate sales of cars and home appliances, Beijing's stimulus measures announced so far have not directly targeted consumption.

While economic planning meetings were held last week It provided broad blows to policy focus And the trend for next year, and more details and details will not be revealed until the annual legislative sessions in March.

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