Factories, shops offer hope for China's economy

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1 年前

STORY: China’s factories are getting busier, and that’s offering hope for a recovery in the country’s wobbly economy.

Data out Friday (September 15) showed industrial output rose 4.5% in August from a year earlier.

That was better than expected, and up on the month before.

Retail sales provided a positive surprise too.

They jumped 4.6%, beating forecasts by a wide margin.

Officials said the figures were encouraging.

Statistics bureau spokesperson Fu Linghui said problems remained, including weak demand.

But he said growth momentum was gradually building.

Property is the big worry.

China’s real estate sector remains under huge pressure amid tumbling investment and sales.

Giant developers like Country Garden have been stumbling to avoid default on their debts.

Reuters calculations show investment in the sector falling by almost a fifth in August.

Now the uncertain outlook has businesses reluctant to hire, although the jobless rate did tick down marginally last month.

It all has Beijing under ever more pressure to step in with new stimulus measures.

Analysts at Nomura predict the Chinese government will probably “once again have to play the role of borrower and spender of last resort”.