China’s 4Q GDP growth backed by continued strength in services, agriculture

China’s better-than-expected economic growth in the fourth quarter of last year was supported by continued strength in the services industry and an expanding agricultural sector, official data published yesterday showed.

Services grew 8.3 percent from a year earlier, accelerating from the 8 percent pace in the third quarter, while agriculture expanded 4.4 percent versus 3.9 percent three months before, the National Bureau of Statistics (NBS) said.

The breakdown of gross domestic product growth in the fourth quarter follows the publication of headline GDP figures on Thursday.

The services sector accounted for almost half of gross domestic product in the quarter by value, while agriculture contributed 10 percent, according to Reuters calculations based on yesterday’s more detailed data.

The data yesterday showed construction continued to decelerate, growing just 3.1 percent in Octoberdecember, as government measures to cool hot property markets reined in growth. The sector accounted for 7.8 percent of the economy.

But real estate growth picked up, growing 4.8 percent versus 3.9 percent a quarter earlier, as property markets in China’s big urban centres stabilised while smaller cities gained some momentum.

Real estate contributed 6.3 percent to GDP in the quarter.

The retail and wholesale sector slowed to 6.9 percent from more than 7 percent in previous quarters as consumption of physical goods such as autos lost momentum.

In December, the retail sales growth of 9.4 percent was the slowest since February 2006, undershooting forecasts.

Of note, the tech sector, which accounted for about 3 percent of GDP in October-december, sustained its doubledigit growth in the quarter.

The sector expanded 33.8 percent compared with 26 percent in Julyseptember.

China’s overall economy grew 6.8 percent in the fourth quarter, better than expected, as an export recovery helped the country post its first annual acceleration in growth in seven years.

That’s welcome news for policymakers looking to cut debt and pollution in older industries without stunting growth in the world’s second-largest economy.

American Express Co posted its first quarterly loss in 26 years, due a US $ 2.6 billion charge related to the US tax law overhaul and the credit card issuer also said it would suspend its share buyback programme for the first half of 2018.

The company’s shares were down more than 2 percent in extended trading on Thursday.

The net loss attributable to common shareholders was US $ 1.20 billion, or US $ 1.41 per share, in the fourth quarter ended December 31, compared with profit of US $ 825 million, or 88 cents per share, a year earlier.

Excluding one-time items, Amex earned US $ 1.58 per share.

The tax-related charge lowered Amex’s capital ratios and to rebuild that, the company said it would suspend share buybacks for the first half of 2018, but continue paying dividends.