China's Consumption Growth Slows in November, Underscoring Domestic Demand Challenges

China's consumption growth weakened in November, as did property investment, while the industrial sector showed limited signs of recovery, reports the South China Morning Post. These developments underscore the challenges facing Beijing's goal of boosting domestic demand as part of its "all-around" economic expansion by 2025.

Retail sales, a key indicator of consumption, rose by 3% year-on-year in November, down from the 4.8% growth recorded in October, according to data released by the National Bureau of Statistics on Monday. This reading fell short of economists' forecasts of 5.3% growth, as polled by Chinese financial data provider Wind.

Overall fixed assets investment, encompassing infrastructure spending, manufacturing, and property construction, increased by 3.3% in the first eleven months of the year, compared to a 3.4% increase from January to October.

Property investment, which has been a significant drag on the economy, declined by 10.4% year-on-year from January to November, a slight worsening from the 10.3% drop in the first ten months of the year.

Thursday's conclusion of the central economic work conference highlighted the need to "vigorously boost consumption, improve investment efficiency, and expand domestic demand on all fronts" as the top economic priority for next year. This shift from this year's focus underscores the challenges in stimulating domestic consumption and investment amidst global uncertainty.