Categories: world

China's economic growth failed for the first time in 3 years

China's economy declined in September quarter, according to data released by China's National Bureau of Statistics (NBS). The economy grew…

China’s economy declined in September quarter, according to data released by China’s National Bureau of Statistics (NBS).

The economy grew by 6.5% year-on-year, leading to the weakest growth since the first quarter of 2009 – the depth of the financial crisis. The reading was below the junior pressure of 6.7% growth and the 6.6% that economists hoped for.

China’s government is targeting growth of around 6.5% for the calendar year 2018.

In the September quarter, GDP grew by seasonally adjusted terms by 1.6%, but in line with expectations but under 1.8% in three months to June.

Business Insider Australia

NBS said China’s tertiary sector – dominated by services – grew by 7.7% year-on-year, with growth of 5.8% and 3, respectively, 4% over its secondary (industry) and primary industries in the same period.

Like the GDP report, monthly indicators of industrial production, retail and fixed investment in real estate in September came.

From a year earlier, industrial output grew by 5.8%, below 6% expected level and 6.1% pace during the year to August.

This was the slowest growth on a yearly basis since February 2016, another period when the Chinese economy was under pressure, similar to recent developments due to the impact of an increasing trade war with the United States and earlier subversive trials throughout its enterprise sector .

The production of coal, steel and steel increased by 5.2%, 7.5% and 9.8% during the year, an increase of 4.2%, 2.7% and 6.4% in the 12 months in August. Cement production was stable at 5% compared with the previous year.

Electricity production and oil refining decreased by 4.6% and 4.9% respectively during the year, compared with 7.3% and 5.6% in August.

However, when industrial production was lacking, the news was better in retail sales, which increased by 9.2% during the year, from 9% in the 12 months to August. The markets had expected sales growth to remain at 9%.

Only in September, retail sales increased by 0.8%.

Business Insider Australia

Indicates that Chinese politicians’ latest efforts to stimulate the economy can begin to come into force increased fixed investment in urban areas by 5.4% nine months of the year compared to the same period the year before.

It was an acceleration of the annual increase of 5.3% between January and August. The pace today was expected to remain the same.

Government-owned investment, accounting for about 40% of total investment, grew by 1.2% between January and September compared with the previous year, a modest improvement of 1.1% rate reported in August.

There was a noticeable acceleration in investment in China’s industrial sector, which grew by 5.2% over the same period, stronger than the 4.3% growth reported a month earlier.

NBS said the value of real estate investment increased by 9.9% year on year (YYD), a deceleration of 10.1% annual rate seen in the first eight months of the year.

The value of property sales increased by 13.3% YY YTD, from 14.5% between January and August.

Building space increased by 3.9% YY YTD, higher than 3.6% growth recorded during the first eight months of the year. New investment investment increased by 16.1% YY, YTD, an acceleration of 15.9% growth was reported a month earlier.

An NBS spokesman said the government will keep economic growth stable despite uncertainty caused by a deterioration of the external environment. They said the government will look at potential effects on employment from escalation in trade tensions with the United States.

They said the government will be able to reach its growth target for 2018 and expect infrastructure investments to stabilize.

A negligible market reaction has been reported on investors reports that are apparently more interested in the exercise of Chinese stocks, which have recovered strongly after a foul on Wednesday, using a number of headlines suggesting that policy makers intend to introduce measures to help stumble or turn around the latest sales press.

Share
Published by
Faela