China’s economy is stabilizing and showing encouraging signs. Retail sales growth has been strong for eight months, suggesting Beijing’s recent stimulus efforts have revived some key sectors. Bloomberg writes about this.
Retail sales rose 4.8% in October from a year earlier, the agency said, the strongest growth since February and beating all forecasts. At the same time, the growth of industrial production turned out to be lower than expected – 5.3%.
Bloomberg analysts attribute the high growth rate of retail spending to the improving situation of the economy, which has recently experienced difficulties associated with a slowdown in production growth.
According to experts, these statistics, despite the slow growth in production, should be considered favorable by the Chinese authorities. Because at this moment the strengthening of domestic demand is the key factor in the development of the country’s economy.
China is boosting consumer spending by subsidizing the purchase of equipment, appliances and cars through a trade-in program announced earlier this year and intensified in recent months.
Appliance sales rose 39% year over year, according to Bloomberg, the fastest growth since 2010.
