Positive signs from Beijing as factory output at a five-month high

China’s activity data was stronger than expected in November, with factory output growth picking up to a five-month high, signalling that a flurry of stimulus measures from Beijing may have put a floor under a fragile economy.

Factory output grew an annual 6.2% in November, the National Bureau of Statistics showed, up from October’s 5.6% and beating expectations of 5.6%.

Growth in China’s fixed-asset investment, one of the main drivers of the economy, rose 10.2% in the first 11 months, unchanged from the gain in the January-October period.

Analysts had forecast a 10.1% rise in the January-November period.

China industrial output expands 6.2% year on year in Nov, up from 5.6% growth recorded in Oct pic.twitter.com/rACZoNTqPc

— China Xinhua News (@XHNews) December 12, 2015

Retail sales growth expanded at an annual 11.2% in November, the strongest expansion this year, compared with 11% in October.

Analysts had forecast 11.1% growth in November.

“While low base could be the factor driving the headline growth, we still have to acknowledge that China’s data are illustrating signs of stabilisation, albeit at a low level,” said Zhao Hao, senior economist at Commerzbank in Singapore.

The data came after weak trade and inflation readings earlier this week.

The world’s second- biggest economy has been hit by weak demand at home and abroad, factory overcapacity and challenges posed by its transition to a consumption-led growth model from one reliant on investments.