China's Industrial Output and Retail Sales Accelerate

Published on Tuesday, 10 November 2009 23:03 Written by Gerard Lerod

New York, Nov 10 (TradersHuddle.com) – The latest economic news out of China, showed that industrial production and retail sales accelerated during the month of October. The numbers increased confidence in forecasts for economic growth to exceed 10 percent this quarter for the first time in more than a year.

The government reported that production rose 16.1% from a year before. Retail sales gained an annual 16.2%.

The strengthening recovery may spark concern that a bubble on consumer and asset prices will occur and it will add pressure on policy makers to reduce their stimulus measures. China may face increasing international calls to allow the yuan to rise, after it halted gains last year to aid its exporters.

Clearly China’s stimulus has worked to pump their domestic economy, and now the 3^rd largest economy in the world will also benefit form increased world demand as the global recovery gains strength.