China reports fastest industrial output growth in nearly 2 years, despite of retail sales missing expectations

On Friday, China reported its industrial output to be growing at the fastest pace since February 2022 in November, despite of the retail sale growth missed this achievement, hinting to a patchy recovery in the world’s second-largest economy.

Economists are approaching the China data with some caution, given a low base effect. The country was in the final months of its stringent zero-Covid curbs in the last quarter of 2022, which had adversely affected the economy.

Miao Ouyang, the economist at Bank of America stated, “The data is a mixed bag.” He added that if one studies the whole data at once, they will come to conclusion that the domestic demand still requires a lot of amendment, also the government “needs to do more to stabilize the economy.”

China registered growth of 6.6% for its industrial output in November, compared to last year, according to the country’s National Bureau of Statistics Friday. It was expected for 5.6% in a Reuters polls and follows a 4.6% rise in October.

Meanwhile, its retail sales climbed 10.1% in November from a year ago, which is the fastest pace since May. It had grown 7.6% in October.