Customers shop at the new store of Costco on May 28, 2024 in Nanjing, Jiangsu Province of China.
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China on Friday reported better-than-expected retail sales and industrial production for September.
Retail sales grew 3.2% from a year ago, better than the 2.5% growth estimated by analysts in an LSEG poll, the National Bureau of Statistics said. Sales rose at a faster clip than last month’s 2.1% growth.
Meanwhile, industrial production expanded 5.4% in September from a year ago, more than the 4.5% expected by analysts.
From January through September, fixed asset investment grew 3.4% from a year ago.
China also reported an urban unemployment rate of 5.1% in September, down 0.2 percentage point from the previous month.
While there are some encouraging signs, “it is hard to say China is out of the woods,” said Gary Ng, senior economist at Natixis. He noted that year-to-date retail sales data showed “cautious sentiment among consumers.”
From January to September, retail sales grew 3.35%, nearly same as the growth reported for January through August at 3.36%.
The data comes after a flurry of recent announcements from authorities as Beijing seeks to boost consumption and support its flagging real estate sector.
On Friday, China also reported slightly better-than-expected gross domestic product data.
Investors had long awaited stimulus measures as economic growth in the world’s second-largest economy slowed with China struggling to bounce back from Covid-19 lockdowns.
Markets have been volatile as investors assess the announcements and look for further details on implementation.
“Whether interest rate cuts and fiscal policies come in adequate magnitude will be key to a rebound in the economy and confidence,” Ng said.
— CNBC’s Anniek Bao contributed to this report.
