BEIJING :China's factory output grew faster than expected in November, supported by stronger energy production and a moderation in sky-high materials costs, but new curbs to fight rising COVID-19 cases hit retailers in the world's second-largest economy.
"Domestic consumption weakened further, which is driven by the zero tolerance policy that hurts the service sector and the continued slowdown in the property sector." Retail sales, however, rose 3.9per cent in November from a year earlier, below the 4.6per cent growth expected in the poll and October's 4.9per cent rise.
Despite the pick-up in industrial activity in November, new COVID-19 outbreaks are creating fresh problems for policymakers as the Omicron variant of the virus threatens the global economic outlook. Some analysts expect fourth-quarter gross domestic product growth to dip below 4per cent from the 4.9per cent pace in the previous quarter, although the full-year growth could still be about 8per cent, above the official target of over 6per cent.
To shore up flagging growth, the People's Bank of China has cut the amount of cash banks must hold in reserve, its second such move this year. It also cut the rates on its relending facility to support the rural sector and small firms.