Gross domestic product grew by 6.9% in the third quarter, down from the 7% in the second quarter, but just ahead of economists’ forecasts of 6.8%.
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The output growth of China’s huge manufacturing sector cooled more than expected to 5.7% in September, disappointing analysts who expected it to rise 6% on an annual basis after a rise of 6.1% the previous month.
It is imperative to state that the communist government has cut interest rates five times since last November in order to provide the much needed impetus to the growth.
China has been taking measures to reassure global markets that the country’s economy is under control after a shock devaluation of the yuan and a stock market plunge fueled fears of sluggish growth. It reported that the recovery of the already weak economy was slower as China was facing increasing downward pressure of domestic economic development.
In nominal terms, growth in retail sales on the other hand picked up to a 10.9% year-on-year pace, from 10.8% (consensus: 10.8%).
Fixed-asset investment climbed 10.3% in the first nine months from the same period a year ago, compared to a median projection of a 10.8% increase.
Many analysts say the third quarter could mark the low point for 2015, predicting a flurry of stimulus measures announced over the past year will gradually take effect. The growth rate forecast for the U.S. however stands at 3.1%.
World equity markets were sent into a tailspin in August on the back of panic about the fate of the Chinese economy, which is the biggest single national contributor to global economic demand.
For example, while a continued contraction in housing construction weighed further on the industrial sector, sales of newly completed or existing homes have been rebounding sharply – helping lift business at services companies like property agencies.
“Today’s data points to a few signs of stabilisation in the Chinese economy, but challenges remain”, HSBC analysts Julia Wang and Jing Li said in a report.
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China is facing the worst situation in the economy during the past six years. “The fluctuations and stock market volatility have little or no bearing on the long-term trends around China”, he said.
