Date
23 September 2017
Industrial output rose 6.0 percent in August from a year earlier, the slowest pace this year, from a 6.4 percent increase in July. Photo: Reuters
Industrial output rose 6.0 percent in August from a year earlier, the slowest pace this year, from a 6.4 percent increase in July. Photo: Reuters

China economy cools amid rising borrowing costs, property curbs

Business activity in China slowed in August amid rising borrowing costs and property restrictions, the Wall Street Journal reports.

Industrial output rose 6.0 percent from a year earlier, the slowest pace this year, from a 6.4 percent increase in July, the National Bureau of Statistics said on Thursday.

The increase came in lower than the median forecast of a 6.6 percent growth, according to a poll of economists.

Retail sales expanded 10.1 percent from a year earlier, versus a projection of 10.5 percent and 10.4 percent in July, also the slowest reading in 2017, Bloomberg reported.

Fixed-asset investment in urban areas rose 7.8 percent in the first eight months of the year over the same period in 2016, compared with a forecast 8.2 percent rise. That’s the slowest since 1999.

“Today’s data are indeed below our expectations. It shows that China’s domestic demand may not be as strong as previous economic indicators suggest,” the Journal quoted Tommy Xie, an economist at OCBC, as saying.

Recent gains in commodities prices and industrial inflation were not the result of stronger demand, but reduced supplies, Xie said.

Meanwhile, China’s home sales grew at the slowest pace in almost three years amid regulatory moves to rein in prices.

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CG

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