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Tuesday, December 13, 2016, 13:06

China's industrial output expands 6.2% in Nov

By Xinhua
China's industrial output expands 6.2% in Nov
Workers are occupied on a production line at a fa ctory in Xinzhuang industry zone in Shanghai, July 30, 2015. ( Pei Xin / Xinhua)

BEIJING - China's industrial output expanded 6.2 percent year on year in November, thanks largely to strong performance in the electronic equipment and automobile sectors, official data showed Tuesday.

The growth rate is 0.1 percentage points higher than October, according to the National Bureau of Statistics (NBS).

Industrial output in the first 11 months this year grew 6 percent from the previous year, holding steady from the pace of the first ten months, NBS figures revealed.

Industrial output, officially called industrial value added, is used to measure the activity of designated large enterprises with annual turnover of at least 20 million yuan (US$2.9 million).

Property sector cools

Investment in China's property sector cooled in the first 11 months of 2016 as measures rolled out by the central government to rein in house prices begin to make a difference, official data showed Tuesday.

Real estate investment rose 6.5 percent year on year in the first 11 months of 2016, slightly lower than the 6.6 percent registered during the January-October period, according to the National Bureau of Statistics (NBS).

For residential property, investment rose 6 percent year on year, accounting for 67 percent of investment in the sector.

Housing sales maintained steady growth. In terms of floor area, property sales jumped 24.3 percent in the first 11 months.

By the end of November, 690.95 million square meters of property remained unsold in China, down 4.27 million square meters from a month earlier.

China's property market has become increasingly diversified, with major cities reporting record prices and smaller cities struggling to shift the glut.

The split picture means the government still needs to strike a balance between curbing asset bubbles in big cities and boosting sales in smaller cities.

The central government is confident that its measures will continue to cool the overheated property market.

Since late September, a wave of property restrictions introduced to more than 20 cities - including Beijing, Shanghai and Shenzhen - have cooled speculation, reduced transactions, reduced the risk of asset bubbles and stabilized the market.

Fixed-asset investment up

China's fixed-asset investment (FAI) rose 8.3 percent year on year to 53.85 trillion yuan (about US$7.8 trillion) in the first 11 months of 2016, data showed Tuesday.

The statistics bureau said in comments with the data that China's economy showed positive changes in November but still faces uncertainties at home and abroad

The growth remained unchanged from the January-October period, the NBS said. Fixed-asset investment includes capital spent on infrastructure, property, machinery and other physical assets.

Infrastructure investment expanded 18.9 percent in the first 11 months, while FAI in high-tech industries surged 15.9 percent during the period, according to NBS data.

FAI by state-owned enterprises climbed 20.2 percent year on year during the period. Private sector FAI, which accounts for more than 60 percent of the total FAI, grew 3.1 percent in the first 11 months, accelerating from 2.9 percent in the first 10 months.

Growth in property development investment fell slightly to 6.5 percent for the January-November period, after rapid housing price rises in major cities forced the country to impose restrictions on home purchases.

Other indicators released by the NBS included industrial production and retail sales, pointing to stabilization in the world's second-largest economy.

Private investment picks up

Growth of private investment picked up to 3.1 percent from 2.9 percent in January-October, suggesting an improved appetite from private firms to invest though still at low levels compared with previous years.

Private investment accounted for 61.5 percent of fixed asset investment in the Jan-Nov period, the stats bureau said.

China's industrial output expands 6.2% in Nov
Source: National Bureau of Statistics

Chinese policymakers have been trying to lure private investors into big infrastructure projects through public-private partnerships, but many lucrative sectors are still dominated by state firms.

Retail sales

NBS data also showed China's retail sales of consumer goods grew 10.8 percent year on year in November, accelerating from the 10-percent rise in October.

Total retail sales of consumer goods hit 3.1 trillion yuan (US$449.9 billion) last month, according to the National Bureau of Statistics (NBS).

The data showed strong consumption potential in rural areas, with retail sales expanding 11 percent, outpacing the 10.8-percent rate in urban areas.

In the first 11 months of the year, China's retail sales of consumer goods rose 10.4 percent year on year to 30 trillion yuan.

Online spending also did well. From January to November, online sales surged 26.2 percent year on year to 4.6 trillion yuan.

Retail sales have contributed significantly to China's economic growth as the country shifts from an export-driven economy to a consumer society.

Consumption contributed 73.4 percent of China's economic expansion in the first half of 2016, official data showed.

Auto sales in China surged for a sixth consecutive month in November, an industry association said on Monday, as consumers rushed to buy cars amid uncertainty over whether a tax incentive will be extended beyond the end of the year.

Alibaba Group Holding Ltd Singles' Day festival on Nov. 11 posted a record 120.7 billion yuan (US$17.73 billion) worth of sales , though the gala shopping day saw growth slow as Chinese shoppers searched for deeper discounts and lower price tags.

Last week, trade data showed China's imports grew at the fastest pace in more than two years in November, while exports also rose unexpectedly, reflecting a pick-up in both domestic and global demand.

The statistics bureau said in comments with the data that China's economy showed positive changes in November but still faces uncertainties at home and abroad.

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