Econintersect: China has released a bevy of strong economic data reports on the eve of the Third Plenum of the CCP (Chinese Communist Party). The country has entered the fourth quarter of 2013 with an apparently accelerating economic expansion. Industrial output rose more than had been estimated (+10.3%), retail sales for October were also up strongly (+13.3%) and exports and balance of trade also achieved srtong growth, as reported by GEI News last week.
Industrial output was up 10.3% year-over-year in October, to produce the strongest three-month growth for that metric since early 2012.
Inflation picked up slightly with CPI (consumer price index) up 3.2% in October compared to the same month a year ago. This was up slightly from September (3.1%) and well below the goverbnment’s target for the year of 3.5%.
Deflation continues at the wholesale level as the PPI (producer price index) was down year-over-year for the twenthtieth month in a row. The October decline was 1.5% compared to September’s drop of 1.3%. Both numbers are year-over-year.
Despite the good economic news, energy and real estate shares led the Shanghai stock market lower Monday (11 November 2013) for the fourth day in a row. According to Bloomberg News, investors are worried about possible government action to slow down a surging real estate market.
Sources:
- China’s industrial output for Oct surges by 10.3pc: govt (AFP, Dawn.com, 09 November 2013)
- China’s Recovery Gives Boost to Xi Amid Reform Summit: Economy (Bloomberg News, 10 November 2013)
- China Industrial Production (Trading Economics, 11 November 2013)
- China: Exports and Trade Surplus Increase for October 2013 (GEI News, 08 November 2013)
- RPT-UPDATE 2-China inflation hits 8-month high amid tightening fear (Reuters, 10 November 2013)
- China Stocks Fall for Fourth Day as Poly Drops on Property Curbs (Bloomberg News, 11 November 2013)