China’s economy logs a lackluster act in November as retail sales leisurely

BANGKOK — China’s economy logged a mixed act in November, the monthly government update said Monday, with retail sales slowing as consumers held back on spending on non-essentials like cosmetics, alcohol and clothing.

Officials said the economy was generally stable with positive signs including a slight advancement in the property sector.

“However, we must also view that the external surroundings is more complicated, domestic demand is insufficient, some enterprises are facing difficulties in production and operation, and the foundation for the sustained recovery of the economy still needs to be consolidated,” Fu Linghui, a spokesperson for the National Bureau of Statistics told reporters.

The update came days after top leaders ended an annual planning conference that produced no major recent policy initiatives as Beijing braces for potential tariff hikes once U.S. President-elect Donald Trump takes office.

Retail sales rose 3% from a year earlier, down from a 4.8% boost in October and from the 3.5% annual rate in January-November.

Factory output rose 5.4%, nearly flat compared with the previous month, while resource in fixed assets like factories slowed.

Overall, property prices fell and home sales also declined in most cities, the update said, as China endures a downturn in its real estate trade after regulators cracked down on excessive borrowing by developers that plunged the whole industry into crisis.

The disruptions to jobs and businesses during the COVID-19 pandemic have further weighed on the globe’s second-largest economy.

A closer look at the numbers released Monday showed sharp increases in some categories of buyer spending last month, especially appliances and vehicles that are subject to government rebates as part of a funds-for-clunkers and other programs meant to get people to replace older appliances and cars with newer ones.

The update said auto sales rose 6.6% in November over a year earlier, but have fallen 0.7% year-on-year so far this year. Sales of appliances jumped more than 22%, and have climbed 9.6% so far this year.

However, sales of cosmetics, alcohol and other beverages, jewelry and clothing all fell in November.

Chinese leaders pledged to receive a more proactive way in pepping up the economy after their two-day planning conference last week, but gave no details on stimulus measures.

Fu told reporters the government expects the economy to meet the target for about 5% annual growth this year.

Markets in China had climbed on renewed hopes for a stronger dose of stimulus to assist the counter frail buyer spending that has kept the economy growing this year at a rate slightly slower than the government’s official target of about 5%.

On Monday, Hong Kong’s Hang Seng index fell 0.6% while the Shanghai Composite index was little changed. The Hang Seng property index fell 1.2%.