Industrial output and inflation in China fell. It means the start of either a soft or hard landing for China’s econony.
Inflation in November dropped to 4.2%. This means 6% plus inflation and 12% plus increases in food prices are over. That may be a net positive for Chinese consumers, if their wages rise and purchasing power increase.
Industrial output slowed to 12.4%. Reuters expected a 12.8% increase.
The news service reported that
Chinese planners have focused on keeping monetary policy tight for most of this year as inflation ran well above the government’s target, even as evidence grew that the real economy — especially private businesses that create most new jobs — was being starved of credit at affordable rates.
But moderating price pressures, as well as easing money supply pressure, allowed the People’s Bank of China on the last day of November to announce a cut in the ratio of reserves banks must hold, a clear signal of a policy shift after a two-year tightening campaign.
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