Chinese growth beats expectations at 6.9pc

Jay Anderson
July 17, 2017

Gross domestic product in Asia's largest economy expanded at a 6.9% year-on-year clip in the three months to June, according to the National Bureau of Statistics.

Industrial production grew at a 7.6% year-on-year clip last month, after increasing by 6.5% in May (consensus: 6.5%).

The robust numbers kept world shares near a record high and briefly helped China's major stock indexes recoup earlier losses.

Growth in inventory floor area in the first half of the year was 9.6 percent lower than one year earlier, compared with a fall of 8.5 percent in the January-to-May period.

But the latest data is well above Beijing's 6.5% growth target for 2017.

As China steps up efforts to fend off financial risks ahead of a five-yearly party congress in the fall, economists forecast that its economy will slow moderately in the months ahead.

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China's nationwide survey-based jobless rate was below 5 percent in June, with 7.35 million new urban jobs created in the first half of the year, the statistics bureau said on Monday. The nation's solid growth reinforces recoveries for commodity exporters and keeps 2017's pickup in global growth on track, said William Adams, senior worldwide economist at PNC Financial Services Group in Pittsburgh.

The quarterly pace came up from 6.7 percent for the first three quarters of 2016 and 6.8 percent for the final quarter of past year.

Last week's data showed that China's exports, as well as imports in June, grew more than expected from a year before, which may offset sluggishness in other parts of the economy in the second quarter of this year.

Retail spending and factory output were also bright spots in the first half.

President Xi Jinping called for tougher regulations to contain financial risks during a weekend National Financial Work Conference, which sets the tone for reforms. But growth is being pressured as Beijing tightens controls on bank lending to rein in a surge in debt levels.

Other reports by BadHub

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