Mainland Factory Activity And Retail Sales Surge

China's industrial output rose 7 percent in November from a year ago, in line with analyst expectations, data showed on Tuesday, expanding for the eighth straight month as robust exports drove a factory recovery from the coronavirus slump.

That compares with 6.9 percent growth in October.

China's retail sales increased 5 percent last month from a year earlier, just missing analysts' forecast for 5.2 percent growth and faster than the 4.3 percent gain in October.

Fixed asset investment increased 2.6 percent in the first 11 months of the year from the same period in 2019, bang in line with forecast but faster than 1.8 percent growth in the first 10 months of the year.

Private sector fixed-asset investment, which accounts for 60 percent of total investment, rose 0.2 percent in January-November, compared with a 0.7 percent decline in the first 10 months of the year.

China's economic recovery looks to be accelerating in the fourth quarter, driven by stronger demand, credit growth and stimulus measures expected to provide a strong tailwind into 2021.

Factory activity growth hit a more than-three-year high in November, an official survey showed, as fewer Covid-19 infections boosted consumer confidence.

Exports also surged at their fastest pace in almost three years thanks to hot demand for personal protective equipment and electronics products for working from home.

However, tougher measures to contain the coronavirus imposed by the country's trading partners have created shipping bottle necks, pushing up transportation costs and capping the speed of China's recovery. (Reuters)