China's Stat Bureau spokesperson:
- Domestic demand is still insufficient
- But also noted major economic indicators recovered markedly in October
- China's consumer expectations improved in October
- Will consolidate trend in economic recovery
Today China’s economic data revealed a slowdown in industrial output growth, which increased by 5.3% year-on-year in October, slightly above September’s 5.4% but below forecasts of 5.6%. Retail sales, however, saw an unexpected boost, rising 4.8% due to a holiday week and the Singles' Day shopping festival, despite consumer price inflation reaching its slowest pace in four months.
The Chinese government has taken measures to support the economy, including a recent $1.4 trillion yuan package aimed at easing local government debt and introducing tax incentives to aid the struggling property market.
With Donald Trump’s recent election and potential tariff hikes on Chinese imports, that will make China’s recovery uncertain, with growth targets likely falling short of the 5% goal.
Despite the potential for Trump headwinds, the China's stance Bureau spokesperson adds:
- Positive factors in the economy increasing, will provide solid support for Q4 growth
- China's property market is stabilizing
- There are initial signs that property prices are stabilizing
- Cash flows of property developers improving.
- Policies supporting property market are showing effects.
- Optimistic about the future trend in property market
- Expects China's consumer prices to maintain modest increases.
- Consumption growth still faces some constraints
- Will boost household incomes and promote consumer goods trade ins
- in light of sluggish producer prices, will expand domestic demand. Deepen supply-side reforms
- To expand policy support for urban village renovation to 300 cities