Trade Resources Economy China's Industrial Output and Retail Sales Exceeded Forecasts Last Month

China's Industrial Output and Retail Sales Exceeded Forecasts Last Month

China's industrial output and retail sales exceeded forecasts last month while inflation rebounded from a 33 month low in signs the economic recovery is accelerating.

Factory production climbed 10.1%in November from a year earlier,the National Bureau of Statistics said today in Beijing,compared with the 9.8%median estimate of analysts surveyed by Bloomberg News.Retail sales growth accelerated to 14.9%,while the consumer price index rose 2%from a year earlier.

Today's reports may reassure China's new leadership under Communist Party chief Xi Jinping that growth in the world's second largest economy,which has slowed for seven quarters,will exceed the government's target this year.The data may also reduce the odds of additional fiscal or monetary easing to support expansion.

Mr Lu Ting head of Greater China economics at Bank of America Corp said that"The Chinese economy is now in a sweet spot and can stay in the sweet spot"through the first half of 2013.The current macro backdrop should bolster asset prices from equities to commodities."

The nation's benchmark stock gauge,the Shanghai Composite Index,rose 4.1%last week,the most in a year,on expectations the recovery will gather pace and as the ruling Politburo signaled an increased focus on urban development.

China's customs administration will tomorrow release November trade data.Export growth probably cooled to 9%from a year earlier,according to the median estimate of 31 analysts in a Bloomberg News survey.Imports rose 2%easing from a 2.4%pace the previous month.

The rise in retail sales compared with the 14.6%median estimate of analysts surveyed by Bloomberg News.Fixed asset investment excluding rural households in the first 11 months of the year rose 20.7%,the same pace as in the January to October period.Economists had forecast a 20.9 percent gain.

Output of rolled steel rose 16.5 percent in November from a year earlier,up from an 11.7 percent pace in October,while electricity production increased the most since February,government data showed.Industries with accelerating growth included telecommunications and computers,ferrous metal smelting and pressing and general-purpose equipment,according to the statistics bureau.

Mr Zhang Zhiwei chief China economist at Nomura Holdings Inc in Hong Kong said that"Growth is on track to rebound sharply above 8%this quarter.Inflation probably bottomed in October and will likely rise further in December and 2013,as growth picks up and adds inflationary pressure."

Consumer inflation compared with the 2.1%median estimate in a Bloomberg News survey of 35 economists and a 1.7%gain in October.Producer prices fell 2.2%,the ninth straight drop,while the pace of the decline moderated for a second month.Deflation eased in costs for mining,raw materials and manufacturing.

Source: http://www.steelguru.com/chinese_news/Macroeconomic_indicators_Chinese_factory_output_tops_forecasts/294718.html
Contribute Copyright Policy
Macroeconomic Indicators-Chinese Factory Output Tops Forecasts
Topics: Construction , Service