- Title: China data points to steadier economy for now, but Trump victory adds to risks
- Date: 14th November 2016
- Summary: BEIJING, CHINA (NOVEMBER 14, 2016) (REUTERS) CHINA'S NATIONAL BUREAU OF STATISTICS SPOKESMAN MAO SHENGYONG WALKING IN WITH THE OTHER OFFICIAL AND SITTING DOWN MEDIA SEATED (SOUNDBITE) (Mandarin) CHINA'S NATIONAL BUREAU OF STATISTICS SPOKESMAN MAO SHENGYONG SAYING: "In October, our domestic economy generally continued a development trend like the first three quarters, which sees an overall stability, progress in stability and quality improvement in stability, with an increase in positive factors." MEDIA SEATED (SOUNDBITE) (Mandarin) CHINA'S NATIONAL BUREAU OF STATISTICS SPOKESMAN MAO SHENGYONG SAYING: "Last year's base was pretty low, which makes this year's property investment growth relatively high. It is caused by the base. Bases in last November and December were also pretty low, so I think property investment will accelerate a bit or stay on its current momentum, and will not decrease dramatically. This is the case." MEDIA SEATED (SOUNDBITE) (Mandarin) CHINA'S NATIONAL BUREAU OF STATISTICS SPOKESMAN MAO SHENGYONG SAYING: "It is still possible for consumption to maintain a relatively fast growth. Based on the current situation, we think consumption in the fourth quarter can maintain stable growth. In terms of your question about whether or not (China) can achieve targets and tasks for the whole year, previously the targets and tasks for the whole year was set to be between 6.5 percent and 7 percent, and I think there should not be a problem achieving over 6.5 percent. Thank you." NEWS CONFERENCE IN PROGRESS
- Embargoed: 29th November 2016 07:07
- Keywords: China economy data Trump victory risks
- Location: BEIJING, CHINA
- City: BEIJING, CHINA
- Country: China
- Topics: Economic Events
- Reuters ID: LVA00158F10NH
- Aspect Ratio: 16:9
- Story Text:China's economy showed further signs of steadying in October as expected, but disappointing retail sales growth and fears of U.S. trade friction under incoming President Donald Trump are increasingly clouding the outlook.
Fixed-asset investment quickened slightly and beat expectations in January-October as the government stepped up infrastructure spending to support growth, official data showed on Monday (November 14).
"In October, our domestic economy generally continued a development trend like the first three quarters, which sees an overall stability, progress in stability and quality improvement in stability, with an increase in positive factors," China's National Bureau of Statistics (NBS) spokesman Mao Shengyong at a regular briefing on Monday.
Property investment rose 13.4 percent in October from a year earlier, compared with 7.8 percent growth in September, according to Reuters calculations based on data issued by the NBS on Monday.
For the first ten months of the year, property investment grew 6.6 percent, accelerating from 5.8 percent in Jan-Sept.
The data suggested real estate developers have yet to feel any notable pressure from recent measures to curb speculative home purchases, possibly because of a push to finish construction projects as home sales volumes have shown signs of declining.
Mao predicted that property investment will accelerate or remain at current levels for the rest of the year, due to a low-base effect.
The most surprising miss for October was found in retail sales, though analysts were quick to note it was too early to tell if slowing consumption would turn into a trend.
Retail sales growth cooled to a five-month low of 10.0 percent from 10.7 percent in September. Analysts had forecast they would hold steady.
On Friday, Alibaba Group Holding Ltd's Singles' Day festival posted a record 120.7 billion yuan ($17.73 billion) worth of sales, though the gala shopping day saw growth slow as Chinese shoppers searched for deeper discounts and lower price tags.
Mao blamed the sales slowdown on a high level of comparison with last year and said consumption could still keep a fast growth.
October exports and imports also fell more than expected, adding to doubts that the pick-up in economic activity in the world's largest trading nation can be sustained even if a trade war with the U.S. does not materialize.
Trump had lambasted China throughout the campaign, drumming up headlines with his pledges to slap 45 percent tariffs on imported Chinese goods and label the country a currency manipulator his first day in office.
China's top leaders are due to map out economic and reform plans for 2017 at the annual Central Economic Work Conference expected in December.
Analysts believe it's too early for the government to start withdrawing policy support now due to rising domestic and global uncertainties, despite the risk of added debt. - Copyright Holder: REUTERS
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