Shoppers visit the new Costco store on May 28, 2024, in Nanjing, Jiangsu Province, China. Vcg | Visual China Group | Getty Images. On Friday, China announced that its retail sales and industrial production for September surpassed expectations. According to the National Bureau of Statistics, retail sales increased by 3.2% compared to the same time last year, exceeding the 2.5% growth forecasted by analysts in an LSEG survey. Sales increased at a quicker pace than the 2.1% growth seen last month. Additionally, industrial production rose by 5.4% in September compared to a year earlier, surpassing analysts’ expectations of 4.5%. From January to September, fixed asset investment saw a 3.4% increase year-over-year. China also reported an urban unemployment rate of 5.1% in September, down by 0.2 percentage points from the previous month. Despite positive signs, Gary Ng, a senior economist at Natixis, remarked that “it is hard to say China is out of the woods.” He observed that the year-to-date retail sales data indicated “a cautious attitude among consumers.” From January to September, retail sales increased by 3.35%, which is nearly identical to the 3.36% growth recorded from January to August. This data follows a series of recent announcements from officials as Beijing aims to stimulate consumption and support its struggling real estate sector. On Friday, China also released gross domestic product figures that were slightly better than anticipated. Investors have been eagerly awaiting stimulus measures as economic growth in the world’s second-largest economy has slowed, with China facing challenges in recovering from Covid-19 lockdowns. Market fluctuations have occurred as investors evaluate the announcements and seek more information on their implementation. “The adequacy of interest rate cuts and fiscal policies will be crucial for an economic rebound and restoring confidence,” Ng stated. — CNBC’s Anniek Bao contributed to this report.
