China’s econ­omy cools as gov’t curbs hit fac­to­ries, prop­erty and re­tail­ers

Daily Messenger - - Biz -

BEI­JING: China’s econ­omy cooled fur­ther last month, with in­dus­trial out­put, fixed as­set in­vest­ment and re­tail sales miss­ing ex­pec­ta­tions as the gov­ern­ment ex­tended a crack­down on debt risks and fac­tory pol­lu­tion, re­ported Reuters.

Bei­jing is al­ready in the se­cond year of a cam­paign to re­duce high lev­els of debt as au­thor­i­ties worry that riskier lend­ing prac­tices, es­pe­cially in the real es­tate sec­tor, could im­peril the econ­omy.

Data on Tues­day pointed to mod­er­at­ing growth over the next few quar­ters as credit ex­pan­sion slows, with year-on-year in­dus­trial out­put gain of 6.2 per­cent in Oc­to­ber miss­ing an­a­lysts’ es­ti­mates of a 6.3 per­cent rise, and be­low a 6.6 per­cent in­crease in Septem­ber.

Fixed-as­set in­vest­ment growth slowed to 7.3 per­cent in the Jan­uary-Oc­to­ber pe­riod, the Na­tional Bu­reau of Sta­tis­tics (NBS) said. An­a­lysts had ex­pected an in­crease of 7.4 per­cent.

“The mod­er­a­tion in ac­tiv­ity data re­leased to­day sug­gests that growth slowed in Oc­to­ber and adds to our con­vic­tion that it will con­tinue to do so in the quar­ters ahead,” No­mura an­a­lysts wrote in a note to clients.

China’s econ­omy has sur­prised fi­nan­cial mar­kets with ro­bust growth of nearly 6.9 per­cent in the first nine months of this year, un­der­pinned by a re­cov­ery in its man­u­fac­tur­ing and in­dus­trial sec­tors thanks to a gov­ern­ment-led in­fras­truc­ture spend­ing spree, a re­silient prop­erty mar­ket and un­ex­pected strength in ex­ports.

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