In some positive news for the Chinese economy, it was reported today that retail sales in China rose unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was reported today that Chinese retail sales rose to an annual rate of 11.2 percent as compared to a reading of 11.0 percent in the preceding month. Analysts on the street had expected Chinese retail sales to rise to 11.1 percent last month. Retail sales are a closely watched gauge as it provides an insight into the inherent domestic demand.
In other economic reports, it was reported industrial production in China rose unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was stated that Industrial Production rose to 6.2 percent as compared to a reading of 5.6 percent in the preceding month. Analysts on the street had expected the Chinese Industrial Production to come in unchanged at 5.6 percent last month. The sharp fall in commodity prices and plunge in global demand has meant that the industrial production in the world’s second largest economy continues to remain weak at the current moment.
The report comes on the back of a report which showed that China’s urban fixed asset investment remained unchanged unexpectedly last month. According to a report released by the National Bureau of Statistics of China, it was reported that Chinese Fixed Asset Investment remained unchanged at a seasonally adjusted 10.2 percent as compared to a reading of 10.2 percent in the previous month. Analysts on the street had expected Chinese Fixed Asset investment to fall to 10.1 percent last month. Many analysts believe that the report is a clear indication that growth in the Chinese economy continues to remain subdued which is a huge cause for concern for economists and investors.
