China’s factory output accelerated further in November, adding to signals of strong economic recovery

China’s industrial production growth rose to 7.0% in November, in line with expectations but faster than October’s 6.9% expansion.

Easing of Covid-19 restrictions revived consumer spending and boosted demand for manufacturing goods that resulted in the fastest output growth in nearly two years in November.

China’s economy continues to accelerate, performing an impressive recovery from coronavirus recession, mainly driven by growing exports, which surged at the fastest pace in almost three years, with the biggest contribution from strong demand for protective equipment and electronics products.

China’s retail sales rose 5% in November from 4.3% previous month, hitting the highest since January. Sales of communications equipment rose by 43.6%, auto sales were up 11.8% and household appliances sales increased by 5.1%, marking the main contributors to retail sales figure.

Economists expect output to further gain momentum and remain above trend in coming quarters, although restrictive measures to contain new wave of Covid-19 infections, imposed by China’s trading partners, may impact the pace of China’s recovery.