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China's Economy Shows Renewed Signs of Weaknesses

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Andrew R. Michaud

• December 15, 2023

China's economy has recently shown some renewed signs of weaknesses, adding to the challenges that Beijing is already grappling with. The country is currently facing a drawn-out property market slump and waning business confidence.

Retail Sales Miss Expectations

Retail sales, a crucial metric for domestic consumption, recorded a 10.1% growth in November compared to the previous year. Although this figure exceeded the 7.6% growth seen in October, it fell short of the 12.9% expansion anticipated by surveyed economists.

Furthermore, China's retail sales experienced a decline from the previous month, showing a 0.06% contraction from October.

Industrial Production Surpasses Expectations

On a positive note, industrial production growth witnessed a significant improvement, reaching 6.6% compared to 4.6% in October. The National Bureau of Statistics reported this figure on Friday, which surpassed the 5.9% increase predicted by economists polled by The Wall Street Journal.

Fixed-Asset Investment Remains Steady

Fixed-asset investment maintained a steady pace, increasing by 2.9% in the January to November period. This growth rate matched the performance of the first ten months of the year. Economists had initially expected fixed-asset investment to grow by 3% on a yearly basis.

Stable Unemployment Rate

China's urban surveyed unemployment rate in November remained unchanged at 5%, the same rate as in October.

In conclusion, China's economy continues to face challenges as key gauges for consumption and investment miss expectations. Despite some positive indicators, such as industrial production surpassing predictions and stable unemployment rates, the nation's recovery remains fragile.