China’s Factories Speed up but New COVID-19 Pain Hits Retailers

An employee works at a production line manufacturing optical fiber cables at a factory of the Zhejiang Headway Communication Equipment Co. in Huzhou, Zhejiang Province, China, on May 15, 2019. Stringer/Reuters

BEIJING—China’s factory output grew faster than expected in November, supported by stronger energy production and a moderation in sky-high materials costs, but new curbs to fight rising COVID-19 cases hit retailers in the world’s second-largest economy.

The data, along with a slowdown in investment growth, underlines the persistent headwinds facing the economy, which have already prompted policymakers this month to ratchet up support.