China’s growth outlook is not looking good

investmentnews.com:

China’s economic recovery remained beleaguered by weak demand and a lingering property crisis last month, putting more pressure on Beijing to roll out supportive policies to juice growth.

While industrial output and retail sales expanded in November, according to the official data released Friday, those numbers were distorted by favorable comparisons to a year ago when Covid lockdowns throttled activity.  

In reality, analysts said both measures of economic activity weakened last month, when compared to more typical periods. Turmoil in the property sector continued to weigh on the overall outlook, as indebted developers struggle to sell enough new homes.

“Discounting the base effect, it’s obvious that China’s economy slowed further in November, especially in terms of retail sales and property,” said Larry Hu, head of China economics at Macquarie Group Ltd. 

Investment in property development has plunged 9.4% so far this year, according to government figures. A slump in home prices deepened, too, with those in the secondary market falling by the most in nine years.

China’s onshore stocks erased increases in the morning session to trade down 0.3% as of 2:20 p.m. local time. The Hang Seng China Enterprises Index pared gains to 2.3%.

President Xi Jinping’s government is under pressure to ramp up supportive measures for the economy, as expectations mount for an ambitious growth goal in 2024. The nation’s post-pandemic recovery has been hampered by a lingering real estate crisis, while deflationary pressures are a sign of stubbornly weak consumer confidence.

Last month’s data is unlikely to convince investors that the stimulus unleashed so far this year has been sufficient. For example, Hu, the Macquarie economist, said retail