Concerns about the growth from China tumbled the global markets since this year. Massive selloff in January takes a quarter to recover. The stimulus from central bank since this concerns occurred are also back to table. However, the weak manufacture data was explained as seasonal reason in the second quarter when we see a strong lead of China in global trade and investment. This month, the newly released data inherit this momentum in terms of consumption and manufacture activity. Industrial production rose 6.3 percent from a year earlier in August, compared with a median estimate of 6.2 percent in Bloomberg survey of economists. Retail sales climbed 10.6 percent last month, from 10.2 percent on July.
Details are listed
- Surveyed jobless rate edged up in August but stabilized around 5.1 percent, NBS spokesman says at briefing
- Online retail sales climbed 26.7 percent this year through August
- Crude steel output rises 3 percent in August from year earlier
- Power output climbs 7.8 percent
- Property development investment climbs 5.4 percent in January through August period
- Home sales value rises 40.1 percent
- Private investments in fixed assets rose 2.1 percent for a second-straight month, matching record low
- Fixed investment in steel mining and oil and gas both fell more than 30 percent
The reports add to other recent data that have helped shore up confidence in the world’s second-largest economy, including better-than-expected trade and the official factory gauge unexpectedly rising to the highest level in almost two years. One challenge is that the property market, which has underpinned the recovery, may face headwinds as the government signals that real estate price increases may be unsustainably high.
The momentum here shows the strength of China’s economy. It’s not like 20 year ago when GDP can achieve a 10%+ growth easily. Right now for the government, taking care of the reform is one of its top jobs. While consolidating its advantage in export, the country still need more reliable results from this reform. It needs to convince the world that China’s economy has a promising future.