Shoppers pass a Huawei Technologies Co. store on Nanjing East Road in Shanghai, China, on Wednesday, Oct. 2, 2024. China’s retail sales disappointed in November as sentiment in the real estate market weakened further, in another sign that Beijing’s efforts to boost the economy have failed to revive sluggish demand.
Retail sales rose by 3% in November from a year ago, missing the forecast of 4.6% in a Reuters poll, and marked a sharp slowdown from 4.8% growth in the previous month. The slump in real estate investment for the January to November period deepened, shrinking by 10.4% from a year ago, following a 10.3% decline reported in the January to October period.
The world’s second-largest economy has been contending with pressure from multiple fronts this year, including a prolonged property downturn, local government debt risks, and high unemployment. Consumer and business confidence has been hit, and the stimulus effect has been short-lived.
Industrial production rose by 5.4% from a year ago, above the expectations of 5.3% growth among economists, accelerating from a climb of 5.3% in the prior month. Fixed asset investment, reported on a year-to-date basis, rose by 3.3% this year through November on an annual basis, missing the forecast of 3.4%.
Despite the overall consumption slump, the trade-in program for used goods has helped to lift sales of home appliances and audio-visual equipment, furniture, and cars in November to grow by 22.2%, 10.5%, and 6.6%, respectively. The urban unemployment rate stood at 5% in November among people above 16 years old, unchanged from the October figure.
Chinese authorities have signaled a heightened urgency to shore up the ailing economy, shifting the country’s policy focus to boosting consumption as Beijing prepares for a potential escalation in trade tensions with the US. The top officials vowed to implement “proactive fiscal tools” and “moderately loose” monetary policies next year, and to “vigorously” lift domestic consumption and stimulate demand “on all fronts.”