China Factory, Retail Sales Miss Expectations in November as Covid Hits Growth

China announced economic data on Thursday that fell short of expectations across the board amid a month marked by widespread Covid curbs.

According to official data, China’s industrial production increased by 2.2% in November after increasing by 5% in October. This is lower than the 3.6% growth predicted in a Reuters poll.

Retail sales plummeted 5.9% year on year, said the National Bureau of Statistics, exceeding estimates of a 3.7% drop in a Reuters poll and a 0.5% drop the previous month.

As China moves toward reopening, analysts anticipate that an increase in infections will first weigh on economic growth before the economy can recover.

In addition, the country is facing headwinds from falling worldwide demand.

Exports declined 8.7% from the previous year in November. Imports fell 10.6% as domestic demand remained weak.