MNI DATA IMPACT:China Data Miss Forecast as Slowdown Continues

     BEIJING (MNI) - China's October industrial activities, investment and

consumption data were all weaker than expected, adding pressure for policymakers

to stabilize growth. A spokeswoman of the National Bureau of Statistics, faced

with a barrage of questions on the disappointing numbers, insisted that

short-term growth is supported by strong domestic consumption, especially

services, upgraded new and traditional industries, such as auto, and better

prospect of exports. 

     Sales of SUVs and MPVs are increasing, said Liu Aihua of NBS at a briefing

on Thursday. China is also registering greater foreign investment as it

continues to open up and optimize its trade environment, said Liu.

     Here are key points MNI highlights from the data:

     - Oct industrial output growth slowed to 4.7% y/y from 5.8% in Sept, less

than projected 5.4%.

     - Fixed-asset Investment recorded 5.2% in Jan-Oct, down from 5.4% in

Jan-Sept and underperforming the 5.4% median forecast.

     - Property investment in Jan-Oct slowed to 10.3% y/y from 10.5% in

Jan-Sept. Infrastructure investment gain also slowed to 4.2% y/y from 4.5%.

     - Retail sales in Oct rose 7.2% y/y, slower than 7.8% in Sept. It was the

smallest growth in six months, and short of expected 7.8%.

     - Registered urban unemployment rate declined by 0.1 pp to 5.1% in Oct from

Sept despite slowing growth. Liu said it was because the overall size of the

economy has increased, therefore each percentage point of growth generates more

jobs. The economy is becoming more service-driven, which also creates more jobs,

she said. Government policies promoting entrepreneurship and innovation also

helped, including opportunities for new grads, according to Liu.

     - Highlighting the challenges, Liu in her opening statement emphasized the

central government's push for "six stabilizing" including stabilizing

employment, finance, trade, foreign capital, investment, and expectations, and

added that overall economy and structural adjustment progress are both stable. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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