China’s factory output rises slower
Print Edition
CHINA’S economy continued to shrink in November with major activity data easing further, according to the National Bureau of Statistics yesterday.
The slowing of the world’s second-largest economy poses a challenge for policymakers, who pledged to keep economic growth and policies steady in 2015, analysts said.
Industrial production grew 7.2 percent from a year earlier in November, down from the 7.7 percent gain in October. It was the second-lowest monthly reading since April 2009, with August this year posting a lower 6.9 percent rate, the official data showed.
Fixed-asset investment gained 15.8 percent in the first 11 months, hitting a 13-year low. The growth from January to October was 15.9 percent.
The only bright spot was retail sales which picked up 0.2 percentage points from a month earlier to 11.7 percent in November, bolstered by the massive online shopping on the Singles Day.
Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd, said that November’s weak activity data “suggested that further monetary easing is highly needed to arrest the economic slowdown.”
Lian Ping, an economist at the Bank of Communications, said although the sharp easing in industrial production was partly due to the temporary factory closure during last month’s APEC meeting in Beijing, there was no question about the weakness in manufacturing.
“China needs more monetary easing to stimulate domestic demand,” Lian said.
China’s economy grew 7.3 percent from a year earlier in the third quarter — the slowest pace in more than five years.
The message from the Central Economic Work Conference, which ended on Thursday, is that there should be a stronger proactive fiscal policy and a more focused and prudent monetary policy.
Wang Tao, an economist at UBS, said stabilizing growth was still the top priority to ensure “a smooth environment for reform and to reduce systematic financial risks.”
“In our view, a proactive fiscal policy needs to be more forceful, and a prudent monetary policy needs to ensure appropriate monetary conditions, implying further liquidity measures and rate cuts may be necessary,” economist Wang pointed out.
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