Current:Home > InvestChina economic data show signs slowdown may be easing, as central bank acts to support growth-LoTradeCoin
China economic data show signs slowdown may be easing, as central bank acts to support growth
View Date:2024-12-23 20:56:58
BEIJING (AP) — China’s factories picked up their pace and retail sales also gained momentum in August, the government reported Friday, suggesting the economy may be gradually recovering from its post-pandemic malaise.
However, despite busy activity in restaurants and stores, the figures showed continuing weakness in the all-important property sector, where real estate developers are struggling to repay heavy loads of debt in a time of slack demand. Investment in real estate fell 8.8% in August from the year before. The decline has been worsening since the beginning of the year.
Acting to relieve the burden on banks, the People’s Bank of China, or central bank, announced late Thursday that the reserve requirement for most lenders would be cut by 0.25 percentage points as of Friday.
That would free up more money for lending, “In order to consolidate the foundation for economic recovery and maintain reasonable and sufficient liquidity,” the central bank said.
Friday’s report showed retail sales rose 4.6% in August from a year earlier, with auto sales climbing 5.1%. Retail sales rose a meager 2.5% in July.
Consumers grew more cautious about spending in the past year, even as China loosened stringent policies to contain outbreaks of COVID-19.
Industrial output grew at a 4.5% annual pace, up from 3.7% in July and the fastest rate since April.
“Overall, in August, major indicators improved marginally, the national economy recovered, high-quality development was solidly advanced, and positive factors accumulated,” Fu Linghui, spokesperson for the National Bureau of Statistics, told reporters.
But Fu added that there were “still many external factors of instability and uncertainty” and that domestic demand remains weak, so that “the foundation for economic recovery still needs to be consolidated.”
The trends in August were somewhat better than expected, Julian Evans-Pritchard of Capital Economics said in a report.
“Fiscal support shored up investment but the real bright spot was a healthy pick-up in consumer spending, suggesting that households may be turning slightly less cautious,” he said.
China’s economy expanded by 0.8% in the three months ending in June compared with the previous quarter, down from 2.2% in January-March. That is equivalent to a 3.2% annual rate, which would be among the weakest pace in decades.
Roughly one in five young workers is unemployed, a record high, adding to pressures on consumer spending.
The downturn in the housing market, which spills into many other sectors in addition to construction and materials, also has weighed on China’s recovery from severe disruptions of the past several years as the ruling Communist Party tried to eliminate waves of COVID-19 infections.
Share prices advanced Friday after the figures were released, with Hong Kong’s Hang Seng gaining 1.7% while the Shanghai Composite index rose 0.3%.
“There’s a growing sense of optimism among a cohort of investors who believe that Beijing’s recent initiatives to stimulate the economy and stabilize financial markets are showing signs of success,” Stephen Innes of SPI Asset Management said in a commentary.
veryGood! (49439)
Related
- Auburn surges, while Kansas remains No. 1 in the USA TODAY Sports men's basketball poll
- I felt like I was going to have a heart attack: Michigan woman won $500k from scratcher
- A Wyoming police officer is dead, shot while issuing warning
- Indonesian voters are choosing a new president in one of the world’s largest elections
- Jamie Lee Curtis and Don Lemon quit X, formerly Twitter: 'Time for me to leave'
- Is mint tea good for you? Health benefits of peppermint tea, explained.
- Allow These 14 Iconic Celebrity Dates to Inspire You This Valentine’s Day
- Pop culture that gets platonic love right
- Minnesota county to pay $3.4M to end lawsuit over detainee’s death
- 'More optimistic': January CPI numbers show inflation still bugs consumers, but not as much
Ranking
- Sister Wives' Janelle Brown Details to Meri Why She Can't Trust Ex Kody and His Sole Wife Robyn
- King Charles III Returns to London Amid Cancer Battle
- Lawmakers honor House clerk who served during chaos of Jan. 6 and McCarthy speaker votes
- How The Bachelor's Serene Russell Embraces Her Natural Curls After Struggles With Beauty Standards
- Footage shows Oklahoma officer throwing 70-year-old to the ground after traffic ticket
- Record Super Bowl ratings suggest fans who talk about quitting NFL are mostly liars
- Why Abigail Spencer Is Praising Suits Costar Meghan Markle Amid Show's Revival
- The S&P 500, Dow, Nasdaq fall as traders push back forecasts for interest rate cuts
Recommendation
-
Lou Donaldson, jazz saxophonist who blended many influences, dead at 98
-
Oklahoma softball transfer Jordy Bahl suffers season-ending injury in debut with Nebraska
-
The S&P 500, Dow, Nasdaq fall as traders push back forecasts for interest rate cuts
-
Kansas lawmakers look to increase penalties for harming police dogs
-
Burger King's 'Million Dollar Whopper' finalists: How to try and vote on your favorite
-
Ukrainian military says it sank a Russian landing ship in the Black Sea
-
Nick and Aaron Carter's sister Bobbie Jean Carter's cause of death revealed: Reports
-
Record Super Bowl ratings suggest fans who talk about quitting NFL are mostly liars