China's Economic Activity Faces Headwinds in November

China's economy continues to face pressures in November amid weak external conditions and slowing domestic demand, alongside ongoing operational challenges, according to the National Bureau of Statistics of China.

Despite these pressures, official data indicated that economic activity remained relatively stable, albeit at a slower pace compared to previous months.

Slowdown in Production and Consumption

Data showed that industrial production rose by 4.8% year-on-year, marking its slowest growth rate in nearly 15 months, with momentum declining in manufacturing and utilities sectors.

In contrast, retail spending grew by only 1.3%, the weakest reading since December 2022, despite consumer support programs, reflecting ongoing caution in spending behavior.

Labor Market and Investment

The unemployment rate according to the survey remained at 5.1%, the lowest level in four months, indicating relative stability in the labor market.

Meanwhile, investment in fixed assets declined by 2.6% during the first 11 months of 2025, a deeper drop than expectations and previous readings, reflecting weak investment appetite.

Weak Credit and Slower Sales

Previous data indicated that new yuan loans remained limited in November, amid weak credit demand, as households tended to be cautious, reducing the impact of government support measures.

Moreover, the growth of car sales slowed to 3.4% year-on-year, compared to a strong 8.8% increase in October, affected by the withdrawal of incentives and tightened household budgets.

EcoPulse24 Analysis

November's data reflects ongoing structural pressures on the Chinese economy, with limited impact from stimulus policies so far, as markets await any additional steps to support domestic demand and stimulate investment in the near future.