China's Economy Grows 4.5% as Exports Surge
China's economy grew 4.5% from a year earlier in the third quarter, faster than the 4.3% of the spring quarter, as a record trade surplus made up for a deepening property slump and weak shoppers. Growth for the first nine months was 4.6%, inside Beijing's target of 4.5% to 5%.
Growth in China, the world's second-largest economy, picked up to 4.5% in the third quarter from a year earlier, according to the National Bureau of Statistics. That was faster than the 4.3% in the second quarter, the slowest in three years, and a little above the 4.4% economists polled by Reuters expected.
For the first nine months of the year, growth was 4.6%, inside the government's target range of 4.5% to 5%. The economy grew 1.2% from the previous quarter.
Exports did the heavy lifting. China's monthly trade surplus hit a record $133.5 billion, as foreign buyers took more of its technology goods. At home the picture was weaker. Retail sales rose 1.1% in September, investment in real estate development fell 20.6% in the first nine months, and overall fixed-asset investment fell 7.2%. Urban unemployment was 5.2%.
Factory-gate prices rose 5% in September, the fastest in more than four years, while consumer prices rose less than 1%. China's growing export surplus has added to strain with its trading partners.
Beijing — China's economy grew 4.5% in the third quarter from a year earlier, the National Bureau of Statistics said in its preliminary estimate, picking up from 4.3% in the second quarter, the slowest pace in three years.
The economy produced 107.1 trillion yuan of output in the first three quarters, up 4.6% from a year earlier at constant prices and within Beijing's official target of 4.5% to 5% for the year. Growth was 5.0% in the first quarter and 4.3% in the second. From the second quarter to the third, the economy grew 1.2%. The third-quarter figure beat the 4.4% that economists polled by Reuters had forecast.
Exports carried the quarter
China's monthly trade surplus reached a record $133.5 billion, as foreign demand for its technology goods stayed strong. Industrial output rose 5.5% in September from a year earlier. "The rebound in September salvaged the lukewarm performance in July and August," said Tianchen Xu, a senior economist at the Economist Intelligence Unit, pointing to more government investment, strong exports and a weak base a year earlier.
Homes and shoppers lag
Spending at home stayed soft. Retail sales grew 1.1% in September. Investment in real estate development fell 20.6% in the first nine months of the year, a steeper drop than through August, and fixed-asset investment in cities fell 7.2%. The urban unemployment rate was 5.2%. "The prolonged housing slump will continue to limit the spillover from stronger industrial activity to the wider economy," said Sheana Yue, a senior economist at Oxford Economics.
Producer prices rose 5% in September, the fastest in more than four years, while consumer inflation stayed below 1%.
What it means outside China
China's reliance on exports has stirred concern among its trading partners, and higher energy costs are adding pressure on its factories. Beijing has added support in recent weeks, including targeted rate cuts, mortgage subsidies and 550 billion yuan of unused local-government debt quota for infrastructure. Economists largely expect the central bank to hold its benchmark lending rates for the rest of the year.