China GDP beats street, weakness in manufacturing
The hard landing isn’t quite here yet if the numbers are to believed, with an annual growth rate to China’s GDP of 6.9% beating the street – however the figure is the lowest on record since early 2009 and there’s a slowdown in the manufacturing sector.
The National Bureau of Statistics released its numbers today, saying that the first three quarters of the year had delivered an overall growth figure of 6.9% from last year.
The first quarter was 7%, the second was 7%, and the third came in at 6.9% according to the official release.
A pre-release survey of economists conducted by Thompson Reuters had the figure at 6.8%, with a range between 6.4% to 7.2%.
While the official figure beat the consensus and the more bearish analysis out there, it means growth in China is at its lowest level since early 2009 – the height of the global financial crisis.
In mixed news for Australia, the level of industrial activity in the country went backward while the value of both imports and exports went down.
The NBS said that the output from industry showed growth of 6.2%, which was 0.1 percentage points lower than in the first half of the year.
In a separate release the Chinese government said total industrial production was up 5.7% year on year for September, lower than analyst estimates of 6%.
Meanwhile, the manufacturing sector grew by 7%.
An overarching goal to shift away from an export-based economy continued to gather pace, with the value of exports from the manufacturing sector down 1.1% year on year. Retail sales grew by 10.9%, ahead of the expected 10.8% growth.
Worryingly for Australia, the value of imports was 7,633.4 billion yuan, down by 15.1%.
The China middle class story also continued to gather pace, with national per capita disposable income up 7.7%, which was up 0.1 percentage points on the first half of the year.