Chinese growth beats expectations at 6.9pc

Lucy Hill
July 17, 2017

The statistics bureau urged that China should be "united even closer around the Party Central Committee with Comrade Xi Jinping at its core" to overcome any uncertain economic factors at home and overseas.

The country's retail sales recorded a growth of 11% in June compared to a year earlier, which was the fastest since December 2015.

Chinese economic growth topped expectations yet again in the June quarter with GDP expanding 6.9% from a year earlier.

China's economy maintained its momentum last quarter, as global trade and domestic demand spurred a pickup at the nation's factories.

The composition of Chinese exports also changed in ways that could intensify trade friction and affect China's trade surplus.

Investment in the manufacturing sector rose 5.5 percent in the first half, up 0.4 percentage points from the first five months.

Treasury yields tumble after weaker-than-expected retail sales, inflation
Rental costs rose, with owners' equivalent rent of primary residence increasing 0.3 per cent after advancing 0.2 per cent in May. However, manufacturing output was up just 0.2 percent and is up 1.2 percent year-over-year, with capacity well below its peak.

Julian Evans-Pritchard, an economist at Capital Economics, said: "China's strong first half to the year won't last". In terms of de-stocking in the property market, the floor space of unsold homes were down 9.6 per cent at the end of June, state-run Xinhua news agency reported.

Fixed-asset investment expanded by 8.6% percent in the first six months of 2017 both beating forecasts.

Forecasters expect economic growth to cool later this year as those credit controls take hold, depressing investment.

"Overall, China's Q2 economic performance provides a favorable backdrop for the authorities to push forward with their structural reforms, including those highlighted at the National Financial Work Conference held over the weekend", ANZ Bank economists said in a note.

China's economy expanded 6.9% year-on-year in the second quarter, matching the rate of growth in the previous three months, official figures have revealed.

The Chinese government previously stated that it is aiming for a minimum growth rate of 6.5% this year, a result that looks more than achievable given the strength seen in the first half of the year.

Other reports by TheDailyFarc

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