China's economy picks up pace in Q3 as exports power uneven recovery
FXI•China's economy grew 4.5% in the third quarter, beating the 4.4% forecast and accelerating from 4.3% in the second quarter. Exports and factory activity supported growth, while consumption and investment remained weak.
1. Growth beats forecast
China's economy grew 4.5% year over year in the third quarter, up from 4.3% in the April-to-June period and above the 4.4% forecast. On a quarterly basis, GDP expanded 1.2%, compared with 0.9% in the prior quarter.
2. Exports and factories lead
A surge in exports and resilient manufacturing underpinned growth. September industrial output rose 5.5% year over year, its strongest pace in six months, while retail sales increased 1.1%, the fastest growth since March; overall consumer spending remained subdued.
3. Investment remains weak
Fixed-asset investment fell 7.2% in the first nine months, while property investment declined 20.6% and infrastructure investment shrank 4.2%. Beijing has expanded fiscal support and credit measures, while the article says exports face pressure from weak domestic demand and escalating trade tensions with the European Union.
