China’s Economic Recovery Strengthens, Fueled by Export Boom

(Bloomberg) -- China’s recovery gathered pace in November, supported by strong demand from home and abroad, putting the economy further ahead of its peers as the only major one likely to expand this year.

• Industrial output rose 7% in November from a year earlier, in line with the median estimate in a Bloomberg survey of economists. Retail sales expanded 5% in the period, as projected. Fixed-asset investment grew 2.6% in the first 11 months of the year from the same period in 2019, also as expected
• The unemployment rate inched lower to 5.2% from 5.3%

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What Bloomberg Economics Says...

The solid activity reduces the need for the People’s Bank of China to cut interest rates in the near term, but it doesn’t mean the PBOC will be able to withdraw policy support quickly. We expect the central bank to take steps to smooth corporate funding as it begins the long process of policy normalization.

Chang Shu, chief Asia economist

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• The retail sales figures boosted sentiment among consumer stocks. The MSCI China Consumer Staples Index reversed an earlier decline to gain 0.4%

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