Beijing: China’s economy slowed further in November, dragged by the deteriorating property market deterioration and disturbance from recurrent covid outbreaks.
The growth of assets investment continued to 5.2% in the first eleven months of this year.
Property investment grew 6% in the same period, slowing from 7.2% during the period of January-October, because the rules of financing remained strict and the sale of a plunging house.
Industrial output rose 3.8% from the previous year, quickly from 3.5% in October and above 3.7% projected by economists.
Retail sales growth weakened to 3.9%, underestimating economists lost from a 4.7% increase.
The sales in the restaurant and catering sector fell 2.7%, because people remained at home in the middle of a new virus outbreak.
Data highlighted the lower pressure on the economy of the real estate sector and the scale of challenges faced by the Chinese government in stabilizing the world’s second largest economy.
While Beijing is expected to produce more credit and indicate some control easing in the property market to support “stability,” officials last week maintained a basic attitude that “home to life, not speculation.” The economic slowdown has encouraged Beijing to transfer its focus to stabilize growth, with the central bank to ease the monetary policy and the Communist Party ordered more fiscal expenses in 2022.
Previously on Wednesday the central bank kept interest rates for unchanged banks and only rotate about half of Debt maturities, withdraw liquidity from the economy.
However, the cutting that was recently announced for the ratio of reserve requirements for banks came into force since Wednesday, which will increase the amount of financial institutions in the hand to lend.
“The international environment is increasingly complex and gloomy and there are still many obstacles to the recovery of the domestic economy,” said the National Statistics Bureau in a statement.
We must “combine macro-cycle macro policy adjustments and counter-cycles to stabilize the macro economy as a whole.” Infrastructure investment, another weak link in the slow recovery of China this year, rose at a slowder speed of 0.5%.
The local government has increased efforts to borrow money and start new projects and Beijing has enabled the authorities to start selling bonds next year from January 1 to accelerate expenses.
Consumption weakens even though there is support from sales that are still strong around the “Single Day” shopping festival, which does not help offset the impact of Covid-19 outbreaks on consumption of service, restaurants and catering sales, and purchases in physical stores.
The unemployment rate surveyed edged up to 5% while the average number of hours of work per week fell to 47.8 from a record 48.6 in October.
The unemployment rate of those aged 16-24 rose slightly to 14.3% from 14.2%.
“Domestic consumption remains weak with disappointing retail sales,” said Raymond Yeung, chief economist for larger Chinese in Australia & New Zealand banking group Ltd.
“An additional increase in the unemployment rate is.
The authorities must promise more support and offer stronger signals to the market.”