Economy

China's Factories Keep Running as Domestic Economy Slows Down – Barron's

Published

3 years ago

December 15, 2021

Chinese factory output is still running high.

AFP via Getty Images

Chinese factory production rose faster than expected in November but disappointing retail sales, slow investment growth, and the property market slump illustrated the challenges facing policy makers seeking ways to support growth.

Manufacturing output rose by 3.8% last month from a year earlier, facilitated by strong coal and crude oil production. The data were notably boosted by strong production of electronic goods and pharmaceuticals.

But retail sales only grew by a yearly 3.9% in November, way below analysts expectations of 4.6%—and a 4.9% rise in October.

The country’s zero-tolerance policy on Covid-19, with strick lockdowns or other restrictions in parts of the country, accounts for most of the disappointing performance of the domestic economy last month.

And the government’s and regulators’ crackdown on the property sector’s leverage has hit demand hard, leading to a 20% annual drop of steel and cement production last month.

The government has pledged to support growth with further fiscal measures, even though the economy should still expand by about 8% this year, above the 6% official target.

The economy’s Covid challenge seemed to worsen on news that China’s vaccine, known as Sinovac, provides a weak protection against the Omicron coronavirus variant. None of the 25 subjects in a Hong Kong study show sufficient antibodies.

“Omicron could be a real challenge for China if they maintain their zero Covid approach (…) It still might be a mild variant but it’s seems so virulent that any containment strategy will be economically tough,” wrote

Deutsche Bank

analysts.

Write to Pierre Briançon at pierre.briancon@dowjones.com

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

1 day ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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