- Dariusz Kowalczyk, Credit Agricole CIB economist
Industrial output in China, the world's second biggest economy, rose at slower than expected pace in November from the previous year, whereas retail sales beat forecasts, the National Bureau of Statistics showed. Industrial production from China's manufacturers, mines and utilities rose 7.2% on year last month, against expectations for a 7.5% advance and down from 7.7% rise recorded in October. Meanwhile, retail sales increased an annualized 11.2%, overshooting forecasts for an 11.5% jump. Fixed asset investment for the January-November period also increased 15.8%, meeting expectations. Friday's data follows weaker-than-expected imports, exports and inflation figures earlier this week, increasing bets that the People's Bank of China will undertake additional easing measures. Ongoing weakness in the world's second biggest economy has fuelled little concern among policy makers, who claim this is the "new normal" level of growth, President Xi Jinping has reiterated on a number of occasions. China's economic growth slowed to 7.3% in the third quarter, the weakest pace since the global financial crisis, despite a series of stimulus measures. The central bank surprised markets by cutting interest rates on November 21 for the first time in over two years and analysts see further easing in coming months as Beijing tries to avert the risk of a sharper slowdown. The Chinese economy is set to grow at the slowest pace in more than two decades this year, as a waning property market continues to weigh on production.
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