China’s GDP growth slow as expected, property measures bite: Report

Analysts had penciled in a gradual GDP slowdown due to an expected softening in property investment and construction as more cities try to cool surging housing prices, while a government campaign against riskier lending pushes up borrowing costs.

New construction starts measured by floor area rose 6.8 per cent in January-September, slowing from a 7.6 per cent rise in the first eight months of the year, the NBS said.

While policymakers’ efforts to curb property market speculation and cut debt are expected to have hit growth in some parts of the world’s second largest economy, activity has been supported by better-than-expected expansion in trade and bank lending.

Beijing has set a slightly more modest growth target of around 6.5 per cent for 2017, theoretically offering more room for reforms after the economy grew 6.7 per cent in 2016 – the weakest pace in 26 years.

GDP in the third quarter grew 1.7 per cent quarter-on-quarter, compared with growth of 1.8 per cent in April-June, which was revised up from initially reported 1.7 per cent growth.

Analysts had expected third quarter GDP would grow 1.7 per cent on a quarterly basis.

China’s factory output grew 6.6 per cent in September from a year earlier, beating expectations, while fixed-asset investment expanded 7.5 per cent in the first nine months of the year, missing forecasts.

Retail sales rose 10.3 per cent in September from a year earlier, compared with analysts’ expectations for a 10.2 per cent rise.

Data from last week showed China’s import and export growth accelerated in September, suggesting the economy is still expanding at a healthy pace. China’s banks also extended more loans than expected last month, buoyed by demand from home buyers and companies.