China’s industrial output growth slows in August
Beijing, China (4E) – The National Buruau of Statistics on Sunday announced that the industrial value-added output in China grew 8.9 per cent year-on-year for the month of August, which is slower compared to July’s 9.2 per cent expansion.
The figure is also lower than what most economists have projected which is a 9.1 per cent industrial output growth in August from a year ago.
The total output from January to August this year grew 10.1 per cent compared to the first eight months in 2011, according to the NBS report.
The latest data increases the likelihood that the Chinese government will make further action to “fine tune” policies to help support an economy currently at its softest growth pace in three years. The market is expecting some form of government stimulus or easing of rates in the coming months.
China’s primary measure of consumer spending — retail sales — was up 13.2 per cent in August year-on-year, according to the statistics bureau. The figure is slightly higher than the 13.1 per cent rise posted in July.
The NBS also reported that urban fixed asset investments in August, which gauges public spending on infrastructure, grew 20.2 per cent during the January to August period of this year compared to the first eight months of the previous year.
China began measuring fixed asset investment in 2011 that includes government investments in both urban and rural areas, although the data does not include rural household investments.
Analysts are predicting an 8 per cent economic growth for China this year — the slowest rate in 13 years — as the U.S. and Europe, its two main exports markets continue to experience sluggish economic growth.