China’s economy continues to face pressure from both weak global and domestic demand. According to the National Bureau of Statistics of China, industrial production grew by only 4.8% year-on-year in November, marking the slowest pace in 15 months and falling short of market expectations. This lag is particularly pronounced in the manufacturing and energy sectors, though mining has shown relatively stronger performance.

The consumer sector is facing an even more pressing challenge. Despite ongoing demand support programs, retail sales increased by just 1.3% year-on-year, the lowest level since late 2022. This weakness stems from financial uncertainty and declining household incomes. The automotive market has weakened further, with sales growth plummeting to 3.4%, a significant drop from October levels, reflecting reduced incentives and consumer caution.

Investment activity is critically low, with fixed asset investment decreasing by 2.6% in the first 11 months of the year. New lending volumes remain modest due to lackluster demand for borrowing and limited impact from government stimulus measures. Although unemployment stands at a historical low of 5.1%, this has not resulted in robust income growth. The economic recovery remains uneven and largely hinges on the effectiveness of additional stimulus measures.