China industrial output climbs in August; retail sales rise

China industrial output climbs in August; retail sales rise

Mubasher: China posted an improvement in its industrial production and retail trade in August, but investment inflows lost momentum, heralding an economic slowdown.

Chinese industrial production rose 6.1% in August, compared with the same month last year, but marginally faster than a rise of 6% seen in July, data released by the National Bureau of Statistics revealed on Friday.

Retail sales growth picked up steam to 9% last August, compared with 8.8% in the previous month.

However, between January and August fixed asset investment grew at a slower momentum of 5.3%, compared with the same period of the prior year. Asset investment grew 5.5% over the period from January to July.

Property investment recorded an annual expansion of 10.1% between January and August, versus 10.2% between January and July.

Capital Economics economist Julian Evans-Pritchard expected that growth momentum would continue to fade given that policy stimulus until now failed to boost a turnaround in infrastructure investment or wider credit growth, despite the property segment is placed under renewed pressure from tight regulatory policy.

However, the International Monetary Fund (IMF) projects that the world’s second largest economy would grow 6.6% this year, while the government aims a growth rate of 6.5%.

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Source: Mubasher