China's economic landscape in November has provided critical insights into the country's performance for the year and upcoming trends. As the data aligns with the annual Central Economic Work Conference, it offers a comprehensive view of various sectors, including financial institutions, investment, and the property market.
Over the first 11 months of the year, total savings deposits in all financial institutions grew by 6.9%, a decrease from 12.4% the previous year. Household and non-financial company deposits also saw a slowdown, indicating a shift in how money is flowing within the economy. The seven-day weighted-average interest rate was lowered to 1.78%, suggesting that relaxed monetary policies are encouraging funds to move from the banking system to the real economy.
Monetary supply indicators present a mixed picture. While M2 growth slowed to 7.1% from 10% last year, M0 growth increased to 12.7%, hinting at a potentially weaker credit-generating ability. November's loan data further emphasizes this trend, with accumulated loan growth slowing to 7.7%.
Investment remains a focal point, with accumulated fixed investments rising by 3.3%. Notably, investment in the primary sector has rebounded to 2.4%, and the secondary sector saw a significant increase of 12.0%. Private investment in manufacturing has also surged, outpacing last year's figures. However, the tertiary sector continues to face challenges, with investment declining by 1.0%.
The property market shows signs of stabilization. Although sales by floor area decreased by 14.3% in November, the rate of decline has slowed, and the price indices for new and existing homes have slightly increased. These developments suggest that recent policy changes are beginning to take effect, supporting a gradual recovery in the real estate sector.
Looking ahead, the Central Economic Work Conference has outlined policies aimed at fostering economic growth. The call for \"moderately accommodating\" monetary and \"more proactive\" fiscal policies indicates a commitment to providing cheaper funds and lowering taxes and fees. Additionally, the focus on mitigating systemic risks in the property industry through supportive measures is expected to enhance economic stability and growth.
Overall, China's November economic data reflects a balance of challenges and opportunities. With strategic policy implementations and sectoral improvements, the economy is poised for continued development and vigor in the coming year.
Reference(s):
Opportunities among obstacles borne from China's November data
cgtn.com
