Abstract: | China's November economic data suggests continued strong growth momentum.Industrial production rose by 19.2% year-on-year (y/y), well above the market consensus.Retail sales growth (15.8% y/y) remained healthy, despite being a bit lower than October (likely due to a holiday-effect distortion).Fixed asset investment growth slowed (32.1% year-todate versus 33.1% as of October), hut as wc discussed before, this data is not the best gauge of investment activity on the ground (see OTG, 19 November 2009, 'Watching cement dry').Consumer price index (CPI) inflation turned positive in y/y terms for the first time since February, up 0.6% y/y (versus -0.5% y/y prior).The challenge for policy makers is to balance the need to support growth with the need to contain the excesses that are building up as a result of the stimulus. |