What’s Behind China’s Superbly Strong Month in Car and Retail Sales

A Bentley show room on Beijing Road in central Shanghai. One

From Fortune:

“Consumers are rushing to buy cars as big luxury brands also report a pickup in China.

China posted its strongest retail sales growth of the year in November, while surging steel production lifted factory output, but private investment began to slow again, leaving the economy more reliant on state spending and mounting debt.

After a rocky start to the year, China‘s economy has performed better than expected and looks set to hit Beijing’s 6.5 to 7% growth target as higher government spending and a sizzling housing market fuel a construction boom.

The pickup in China‘s manufacturing sector has helped spur a rebound in global prices of industrial commodities and other goods, adding a welcome reflationary pulse that is slowly being felt around the world.”

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