Agencies
Chinese retail sales slowed in November and housing prices fell, the government said Monday, with demand still lackluster despite a flurry of stimulus measures over the past few months.
The report came just a few days after top leaders ended an annual planning meeting in Beijing that produced no major new policy initiatives but included promises to do more to encourage people and businesses to spend more more.
Analysts said ruling Communist Party leaders were leaving room to do more if U.S. President-elect Donald Trump delivers on his promises to raise tariffs on imports from China once he takes office.
The National Bureau of Statistics reported that the economy was stable, with the unemployment remaining at 5 percent.
"However, we must also see that the external environment 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.
Retail sales rose 3 percent from a year earlier, down from October’s 4.8 percent increase and below the 3.5 percent annual rate in January-November.
Consumers held back on spending on non-essentials like cosmetics, alcohol and clothing, though purchases of appliances and vehicles surged thanks to a government program to pay subsidies to entice people to replace older appliances and cars with newer, energy efficient versions and electric vehicles.
Auto sales rose 6.6 percent in November over a year earlier, but have fallen 0.7 percent year-on-year so far this year. Sales of appliances jumped more than 22 percent, and have climbed 9.6 percent so far this year.
The cash-for-clunkers and appliance recycling programs have helped keep factories humming, as has President Xi Jinping’s emphasis on building up high-tech industries for "high-quality” development. That has supported manufacturing: growth in factory output ticked up to 5.4 percent year-on-year from 5.3 percent in October.
Chinese leaders pledged to take a more proactive approach in pepping up the economy after their two-day planning meeting last week, but gave no details on stimulus measures.