China’s Economic Recovery Strengthens as Consumer Spending Gains By Bloomberg


© Bloomberg. An employee pulls a rack while sorting through orders at a Cainiao warehouse, the logistics subsidiary of Alibaba Group Holding Ltd., ahead of the company’s annual Singles’ Day shopping extravaganza in Wuxi, Jiangsu province, China, on Monday, Nov. 9, 2020. Alibaba’s Singles’ Day event culminates annually Nov. 11, an online shopping phenomenon that with $38 billion of sales in 2019 easily dwarfed Black Friday and Cyber Monday. Photographer: Qilai Shen/Bloomberg

(Bloomberg) — China’s economic recovery strengthened in October, with consumer spending picking up steadily and industrial production and investment rising faster than expected.

  • Industrial output rose 6.9% in October from a year earlier, versus a median estimate for a 6.7% increase. Retail sales expanded 4.3% in the period, compared to a projected 5% rise. Fixed-asset investment grew 1.8% in the first 10 months of the year, versus a forecast 1.6% increase.
  • The surveyed urban unemployment rate inched lower to 5.3%.

Key Insights

  • The data shows China’s recovery is well on track, supported by stimulus policies, strong export demand, and a virus outbreak that’s under control. Consumer spending is also catching up quickly after a slow start, complementing the industrial-led recovery.
  • Retail spending received a boost from the golden week holiday last month, though many shoppers also delayed purchases to take advantage of the Singles’ Day shopping festival in November. In the first 10 months of the year, retail sales were still down 5.9% from the same period in 2019.
  • “China’s growth recovery should sustain in the fourth quarter, driven mainly by the continued recovery of consumption on the back of improving household income,” UBS Group AG (SIX:) economists led by Ning Zhang wrote in a note before the data release. “The continued recovery will likely limit government’s incentive for further easing.”

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here