BOFIT Weekly Review 2015/46
Growth in Chinese retail sales outstrips fixed investment
With growth accelerating slightly from previous months, retail sales growth hit 11 % y-o-y in October. In contrast, October growth in fixed asset investment (FAI) remained at 10 % y-o-y, its lowest growth pace since 2000. The fact that FAI is growing slower than retail sales provides further evidence of the structural readjustment of China’s economy. Industrial output rose 6 % y-o-y in October.
Looking at the foreign trade picture for the first ten months of the year, the value of goods exports fell 3 % y-o-y. The value of imports in January-October was down 16 %, reflecting the fact that prices of energy and raw material inputs continue to fall. The January-October trade surplus climbed to nearly $490 billion.
12-month inflation slowed from 1.6 % in September to 1.3 % in October. The core inflation rate (omits food and energy prices) was 1.5 %, largely unchanged from previous months. October producer prices were again down, falling 6 % y-o-y.
Industrial output, retail sales and fixed investment
Source: Macrobond