China’s industrial production growth seems to have rebounded in November

China’s industrial production growth is likely to have recovered in November. According to a Societe Generale research report, industrial output growth is likely to have rebounded to 6.2 percent year-on-year in November from October’s 6.1 percent year-on-year rate, indicated by the huger rises in the official manufacturing PMI readings and the surprisingly strong recovery in trade growth.

Meanwhile, fixed asset investment growth is expected to have slowed to 8.5 percent year-on-year in November from 9 percent in October amidst negative base effects on the investment growth of infrastructure and manufacturing. On the other hand, housing investment growth, possibly improved further; however, the housing policy tightening is expected to have began putting material pressure on housing sales that might indicate towards a slowdown in investment in the first half of 2017, said Societe Generale.

“For retail sales, we expect a notable rebound from 10 percent yoy to 10.4 percent yoy in nominal terms, due mostly to the strong sales on Singles’ Day (11 November)”, added Societe Generale.