China Factory Data Beats Forecasts, Asia Ignores COVID Slump

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Chinas factory output rose fasterthanexpected in October and retail sales sped up, as the recovery in the worlds secondlargest economy from its COVID19 slump gathered momentum.

Industrial production climbed 6.9 in October from a year earlier, data from the National Statistics Bureau showed on Monday, in line with Septembers gain and faster than the 6.5 rise expected in a Reuters poll of analysts.

The upbeat figures came as other Asian powerhouses also climbed out from their pandemic depths with Japans economy reporting its fastest quarterly growth on record.

Chinas industrial sector has staged an impressive turnaround from the pandemic paralysis seen earlier this year, helped by resilient exports. Now, with the coronavirus largely under control in China, consumers are opening up their wallets again in a further boost to activity.

The latest data suggest that the broadbased acceleration of Chinas economy continued in October, Julian EvansPritchard at Capital Economics said in a note.

Policy stimulus continued to boost investment and industrial output while growth in real retail sales and services activity returned to previrus levels.

Across China, smelters and refineries ramped up production in October with aluminium and crude oil hitting record output levels as the reopened economy stoked demand.

Growth is expected to accelerate in the fourth quarter as the service sector recovery maintains momentum, Fu Linghui, spokesman of the National Statistics Bureau said,…

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