November data revealed declining property construction continued to weaken cyclical momentum in China’s economy, but narrower declines in output and sales of automobiles offer hope that the sector will provide a boost to the economy in 2022. COVID-related restrictions on travel and activity continue to impact household consumption, and retail sales growth was far below expectations last month. More policy support will be forthcoming, but both credit growth and property sales will need to pick up in the coming months for China’s economy to stabilize.
