China Industrial Production Up In November

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China Industrial Production Up In November

China's Industrial Production Up By 6.6% In November

China's industrial production increased in November at a much faster pace than was initially forecasted. One outlier in China's data was a steady growth in the manufacturing output. It is something that Western economies like the US and the UK are really struggling to maintain.

In November, a 6.6% growth was recorded Y/Y in industrial production, according to data from official sources. The forecast was for a growth of 5.6%, but the actual reading was +1.0% higher. Similarly, the data was also higher than the previous month's reading of 4.6%.

Chinese Economy Shows Resilience

According to experts, one of the factors that contributed to the strong reading in November was that the comparison was made from low readings. In fact, most of the Chinese factories still continue to experience the ill effects of the COVID lockdowns.

But despite the shortcomings mentioned in the fine print, the bottom line is that economic output shows resilience. It also shows that the hopes of a full economic recovery post-COVID are still not completely dead.

Another thing shown in the recent reading was that disinflation is still going on in the Chinese economy. At the same time, the broad business activity is still weak, according to the data.

Similarly, local spending is also still weak, which tells us that Beijing's efforts to inject liquidity into the economy are still not strong. Overall, around $200 billion was added to the economy by the People's Bank of China (PBoC).

Besides the industrial production data, other economic releases from China show that several sectors are still under pressure. For example, the retail sales only showed 10.1% growth against a forecast of 12.5%.

In addition, the unemployment rate in China is still unchanged at nearly 5%, which is a big number given the size of the Chinese economy.

The bottom line is that the data from China shows an uptick in the industrial sector, which will likely allow the Chinese Yuan and other currencies to inch higher in the FX markets.

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