China economy misses forecasts

China’s business activity mostly slowed in November, as industrial production and retail sales showed renewed weakness.

A wonton dumplings production line in Shanghai. Pic: AFP

China’s business activity mostly slowed in November, as industrial production and retail sales showed renewed weakness, while investment improved slightly, official data showed.

Value-added industrial output in China rose 5.4 per cent in November from a year earlier, slowing from a 5.9 per cent on-year increase in October, the National Bureau of Statistics said Friday. November’s figure missed economists’ median forecast for 5.9 per cent growth.

The Australian dollar sank on the news, dropping 0.58 per cent to US71.85c.

Retail sales in China rose 8.1 per cent in November from a year earlier, slowing from an 8.6 per cent on-year gain in October and missing economists’ median forecast for 8.8 per cent growth.

Fixed-asset investment outside Chinese rural households climbed 5.9 per cent in the January-November period from a year earlier. It was faster than the 5.7 per cent increase recorded in the January-October period.

Growth for the closely-watched indicator of construction activity slightly exceeded economists’ median forecast for a 5.8 per cent gain.

Separately, unemployment based on an official survey in China’s large cities stood at 4.8 per cent in November, compared with 4.9 per cent in October, the statistics bureau said.

Dow Jones Newswires