Chinese economy gathering steam as market demand improves

Chinese economy gathering steam as market demand improves

China’s economic recovery accelerated in August as market demand improved gradually while major economic indicators picked up marginally, the National Bureau of Statistics said on Friday.

The world’s second-biggest economy still faces many unstable and uncertain factors in the external environment while domestic demand remains insufficient, the state-run China Daily reported.

According to the bureau, the country will ensure effective implementation of the supportive policy measures in place to consolidate the foundation of economic recovery that is not yet solid.

Figures released on Friday by the bureau showed China’s industrial output, a gauge of activity in the manufacturing, mining and utilities sectors, grew by 4.5 percent in August from a year earlier after a 3.7 percent rise in July.

Retail sales, a key measurement of consumer spending, grew by 4.6 percent year-on-year in August, versus the 2.5 percent growth in July.

New home prices, on the other hand, declined in 70 cities at the fastest pace in 10 months in August, down 0.3 percent month-on-month, compared to a 0.2 percent drop decline in July.

The bureau also said that China’s consumer price index, a main gauge of inflation, is likely to continue to recover as the upcoming holidays of the Mid-Autumn Festival and National Day are expected to boost market demand for food and services.

Source: Kuwait News Agency