2019.12.1602:45:00UTC+00China Industrial Production, Retail Sales Growth Tops Expectations

China industrial production and retail sales expanded at the fastest pace in five months in November, exceeding expectations, as steps taken by the government helped to boost domestic demand.

Industrial output grew by more-than-expected 6.2 percent on a yearly basis in November, faster than the 4.7 percent increase in the previous month, the National Bureau of Statistics reported Monday. Output was forecast to climb 5 percent.

Likewise, retail sales growth accelerated to 8 percent from 7.2 percent a month ago. Economists had forecast an annual growth of 7.6 percent. This was also the fastest increase since June.

In January to November period, fixed asset investment logged a steady growth of 5.2 percent. At the same time, property investment advanced 10.2 percent, following a 10.3 percent rise in January to October period.

Further, data showed that house prices in first-tier cities, namely Beijing, Shanghai and Shenzhen and Guangzhou climbed 0.6 percent in November from a month earlier. Prices in tier-2 cities gained 0.2 percent and that in tier-3 cities by 0.5 percent.

Admittedly, the phase-one US-China trade deal could boost both export activity and corporate investment in the near term, Martin Lynge Rasmussen, an economist at Capital Economics, said.

But real estate, a key prop to growth in recent quarters, is primed for a moderation as financing to the sector is being squeezed by a regulatory crackdown.

The NBS also reported that the surveyed unemployment rate came in at 5.1 percent in November, unchanged from October.