- Angus Nicholson, market analyst at IG
China's industrial production and retail sales data disappointed in the last month of 2015. Output from the nation's mines, factories and utilities rose 5.9% in December from a year ago, slowing from the 6.2% growth in November, the National Bureau of Statistics reported. Analysts, however, had predicted industrial output to increase 6.1%. Worse-than expected output data signals persistent weakness in factory activity at the end of the year. For the full year of 2015, China's industrial production increased 6.1%, compared with an 8.3% surge in 2014. At the same time, retail sales soared 11.1% in December from a year earlier, slowing from 11.2% rise in the preceding month and also missing expectations for an 11.2% advance for December.
China's economy grew at the slowest pace in 25 years in 2015, increasing pressure on Beijing to act to address concerns of prolonged slowdown in the world's second biggest economy. In 2015, the Chinese economy expanded at a 6.9% pace, compared with officials' expectations for a 7% growth and down from 7.3% in 2014. In the final quarter of the year, GDP increased 6.8%, compared with September quarter's growth of 6.9%. To combat slowing growth, the Chinese government has unleashed a slew of easing measures, including interest rate and reserve requirement ration cuts from the PBoC.
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