Investing.com-- Chinese industrial production grew more than expected in December as recent stimulus measures from Beijing supported business activity, while retail sales beat expectations as private spending rebounded.
Industrial production grew 6.2% year-on-year in December, higher than the median forecast of 5.4% growth, government data showed on Friday. It compares to a 5.4% rise seen in the prior month.
This brought the annual industrial production growth for 2024 to 5.8%, in line with last year's rise.
The reading indicated that the country’s massive manufacturing sector was beginning to pick up following more supportive measures from Beijing over the past three months.
However, other readings still presented a mixed picture of China’s economy. Fixed asset investment- a key gauge of capital spending by big businesses- grew 3.2% in December, slightly slower than expectations, and November's rise of 3.3%.
Recent stimulus measures also appeared to have aided private spending, with Chinese retail sales rising 3.7% in December, stronger than expectations of 3.5%. The reading also accelerated sharply from the 3.0% rise seen in November.
Yearly retail sales for the period ended December, was largely as expected at 3.48%.
China's economy faces looming external risks, including potential U.S. tariffs exceeding 60% on Chinese goods, as President-elect Donal Trump is scheduled to assume office next week.
While Beijing had announced recent measures to support businesses, the country has so far done little to shore up private consumption.
Recent reports and policy meetings in China have signaled plans for a more proactive fiscal policy to support economic growth. Numerical details on these measures are expected to be announced at an annual parliament meeting in March.
Other data showed China’s unemployment rate rose slightly more than expected to 5.1%, from 5.0% in the previous month.