China’s Industrial Output Slows to a worrisome 6.9% in August

Industrial-output increase was below 51, which was the slowest single-month pace outside of the Lunar New Year holiday period of January and February since December 2008.

Industrial-output increase was below 51, which was the slowest single-month pace outside of the Lunar New Year holiday period of January and February since December 2008.

China’s industrial output rose to its weakest pace since the 2008 global financial crisis and fixed-asset investment growth trailed projections, adding to the confirmation that China is slowly losing its drive.

Industrial production climbed 6.9 percent from last year in August, the National Bureau of Statistics said today in Beijing, in comparison to 9 percent in July. Retail sales picked up 11.9 percent and fixed-asset investment in the January-August period expanded 16.5 percent.

Today’s information adds to dangers that China’s second from last quarter economic development will drop beneath Premier Li Keqiang’s 2014 objective of around 7.5 percent after a measure of new credit released yesterday trailed evaluations and August imports dropped. Li said this week that the government won’t depend on financial jolt to impel development and the legislature will adhere to targeted policies.

“Premier Li’s latest comments send the strongest signal so far that the government may not announce any broad-based easing in the near term despite weakening growth,” Chang Jian, chief China analyst at Barclays Plc in Hong Kong, said in a note yesterday. “This suggests that activity will more likely slow in the coming quarters.”

Industrial-output increase was below 51, which was the slowest single-month pace outside of the Lunar New Year holiday period of January and February since December 2008.

Growth in retail sales increased 11.9% in August. The average evaluation for growth in January-August fixed-asset investment excluding provincial family units was 16.9 percent, after a 17 percent pick up in the initial seven months.

In a speech at the World Economic Forum in the northern Chinese city of Tianjin on Sept. 10, Premier Li said the service won’t be occupied by transient changes in individual economic indicators and will keep up with its focus on structural alterations and managing long-term issues. Growth somewhat higher or lower than the 2014 target of 7.5 percent is adequate until employment, incomes and environmental security enhances, he said.

Aggregate financing, China’s broadest measure of new credit that incorporates bank loaning, corporate security issuance and shadow-banking products such as endowed loans, was 957.4 billion yuan ($156 billion) in August, the People’s Bank of China said yesterday in Beijing. The number followed several analysts estimated and dropped from 1.58 trillion yuan a year prior as the national bank developed a crackdown on shadow banking.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
17 hours ago
Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
2 days ago
iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
4 days ago
Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

The French oil major, Total, has signed a $27 billion deal to fund a 1-gigawatt solar power plant, and boost oil and gas production in the Middle-East region.
4 days ago
PMI seals $1.51 billion takeover of British inhalation specialist Vectura

PMI seals $1.51 billion takeover of British inhalation specialist Vectura

Philip Morris International (PMI) acquires a 22.6% stake in British inhalation specialist Vecutra closing in on the controversial $1.51 billion takeover.
5 days ago
Apple co-founder Steve Wozniak joins the space race

Apple co-founder Steve Wozniak joins the space race

Wozniak, popularly known as “Woz”, is setting up a private space company with Ripcord co-founder Alex Fielding. In a tweet, Wozniak shared a promotional video for the company c
6 days ago