Fixed asset investment (FAI) growth improved further to 5.9 per cent YoY in January–September from 5.8 per cent YoY in January–August, the Chief Investment Office of the investment banking company UBS said on its website. FAI manufacturing and infrastructure were the main drivers, up by 10.1 per cent and 8.6 per cent YoY, respectively, in the first nine months of the year, partially offsetting the drag from FAI property.

China’s gross GDP growth in 3Q 2022 has beaten expectations at 3.9 per cent YoY (consensus: 3.3 per cent), up from 0.4 per cent in 2Q. The quarterly rebound was led by investment (+5.5 per cent YoY) and retail sales (+3.5 per cent YoY). FAI growth further improved to 5.9 per cent YoY in January–September from 5.8 per cent YoY in January–August.

Industrial production (IP) growth advanced significantly to 6.3 per cent YoY in September, mainly due to policy support on targeted sectors and a low base. Among key sectors, auto production was robust at 23.7 per cent YoY thanks to ongoing stimulus. Production of other capital goods recorded high single-digit to low-teen growth.

Retail sales growth slowed to 2.5 per cent YoY in September from 5.4 per cent YoY in August. Auto sales (~10 per cent of total sales) stayed robust at 14.2 per cent YoY, while consumer staples were resilient with mid-to-high single-digit growth. Communication-device sales also rebounded. Still, most consumer discretionary sectors slowed down to varying degrees. Housing-related items stayed weak, while catering slowed to -1.7 per cent YoY on tightened COVID restrictions.

GDP growth is expected to reach about 3 per cent in 2022, before rebounding to around 5 per cent YoY in 2023 on strong infrastructure, resilient manufacturing, and recovering consumer spending.

Fibre2Fashion News Desk (NB)