Investing.com– Chinese industrial production grew as expected in November as recent stimulus measures from Beijing supported business activity, although retail sales missed expectations as private spending remained weak.
Industrial production grew 5.4% year-on-year as expected in November, government data showed on Monday. Growth also picked up marginally from the 5.3% seen in the prior month.
The reading indicated that Chinese business activity, especially in the country’s massive industrial sector, was beginning to pick up following more supportive measures from Beijing over the past three months.
These include easier access to funding and heightened liquidity conditions in the country- two factors that bode well for local businesses.
But while output increased, other readings still presented a mixed picture of China’s economy. Fixed asset investment– a key gauge of capital spending by big businesses- grew 3.3% in November, slower than expectations of 3.5%.
Recent stimulus measures also did not appear to have aided private spending, with Chinese retail sales rising 3% in November, much weaker than expectations of 4.6%. The reading also slowed sharply from the 4.8% rise seen in the prior month.
Soft consumer spending has been a key point of pressure on the Chinese economy, keeping the country largely within the throes of disinflation.
While Beijing had announced recent measures to support businesses, the country has so far done little to shore up private consumption.
Other data showed China’s unemployment rate remained unchanged at 5%.
