China's GDP growth increased by 6.9% in 2017

Two-thirds of its economic growth came from consumer spending.

For the first time since 2011, China’s GDP growth has escalated by 6.9%, according to a report from SC Global Research.

Results from Q4 2017 shows that GDP growth increased by 6.8%, which is above market expectations of 6.7%.

Further, about two-thirds of China’s economic growth comes from consumers, replacing investment as the previous largest growth driver for China.

“We believe consumer spending will remain solid in 2018, reflecting a tight labour market, recovering income growth, and strong consumer confidence,” SC Global Research said.

Industrial production growth moved up marginally to 6.2% y/y, whilst service production growth increased to 7.9% y/y. Additionally, electricity production rose by 6% y/y from 2.4% in November.

However, retail sales growth decreased from 8.8% in real terms to 7.9% y/y in December.

Here’s more from SC Global Research:

The registered unemployment rate – which excludes migrant workers – fell to 3.95% in Q3-2017, the lowest level in the past 15 years. The survey-based unemployment rate – which covers migrant workers – fell below 5% in 2017, the lowest level since the measure was introduced in 2013. The labour demand-to-supply ratio rose to 1.16 in September 2017, implying tightness in the market.