With improving fundamentals economic recovery is stable

The data for November show that China's economic recovery has accelerated. The performance of the economy in the past 11 months means there is little pressure to achieve the growth target of around 5 percent for the year.

Industrial and service sector productivity continues to expand. The added value of industrial enterprises above designated size increased by 6.6 percent in November year-on-year, and the growth rate was 2 percentage points higher than that in October. The service industry production index for the month increased by 9.3 percent year-on-year in November, 1.6 percentage points faster than the previous month.

Demand has improved as well. In terms of retail sales, the total retail sales of consumer goods increased significantly by 10.1 percent year-on-year in November, 2.5 percentage points more than the previous month, which was the highest year-on-year growth rate since June. Resident consumption has picked up.

Investment in infrastructure and manufacturing has achieved steady growth, the growth rate of new real estate construction areas has turned positive, and against the background of the successive introduction of favorable policies, real estate fundamentals are expected to improve.

It is estimated that manufacturing investment increased by 7.1 percent year-on-year in November, 0.9 percentage points higher than that in October, continuing the good performance since the third quarter. Since August this year, the profits of industrial enterprises have achieved positive growth for three consecutive months. High-tech industries continue to lead the overall development. From January to November this year, the country's high-tech manufacturing investment increased by 10.5 percent year-on-year. Industrial upgrading and technological progress have accelerated, forming a strong support for the country's manufacturing investment.

In November, the area of new housing construction increased by 4.9 percent year-on-year, a significant increase of 26 percent from October and achieved positive results for the first time in the past two years. As cities such as Beijing and Shanghai further introduce favorable policies for the property market, real estate sales, especially second-hand home sales, are expected to pick up.

The Central Economic Work Conference sent a series of favorable signals. With the endogenous momentum and strong policy support, China's economy is expected to achieve a sustained recovery.

21ST CENTURY BUSINESS HERALD