China’s Stat Bureau spokesperson:
- Domestic demand is still insufficient
- But also noted major economic indicators recovered markedly in October
- China’s consumer expectations improved in October
- Will consolidate trend in economic recovery
Today China’s economic data revealed a slowdown in industrial output growth, which increased by 5.3% year-on-year in October, slightly above September’s 5.4% but below forecasts of 5.6%. Retail sales, however, saw an unexpected boost, rising 4.8% due to a holiday week and the Singles’ Day shopping festival, despite consumer price inflation reaching its slowest pace in four months.
The Chinese government has taken measures to support the economy, including a recent $1.4 trillion yuan package aimed at easing local government debt and introducing tax incentives to aid the struggling property market.
With Donald Trump’s recent election and potential tariff hikes on Chinese imports, that will make China’s recovery uncertain, with growth targets likely falling short of the 5% goal.