Economic news

Chinese industry seen posting another impressive month of growth in August

China factories show data of firm monthly growth in August, which implies that the world’s number two economy keeps rising at a regular pace regardless of increasing borrowing costs and a slowdown on a housing market, according to Reuters survey.

The official production PMI is forecasted to end up at 51.3 this month, which is just a modicum lower than July’s figures, as a median estimate of 39 experts surveyed by Reuters showed. This means Chinese producers are going to be past 13 months of growth in a row, getting the highest income in years, because of the building boom driven by the government and exports animation.

The 50-mark separates contraction and expansion in a month. Boosted by huge spending for infrastructure and unprecedented bank loans in 2016, Chinese economy rose at a pace higher than anticipated, namely 6.9%, in the first six months of 2017, and data suggests it is on the right track to reach the governmental yearly objective of about 6.5%.

The traction has opened the road for officials to put their mind to finding a solution for financial risks deriving from a fast debt accumulation and a property market that’s overheated.

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