China's third quarter growth: key facts

China's third quarter growth: key facts

19 October 2015, 09:07

Official numbers showed Monday that China's economy expanded by 6.9 percent on-year in the third quarter of 2015, beating the consensus forecast of 6.8 percent.

Although better than it was forecast, growth was still the slowest since the quarter through March 2009, when the economy grew by 6.2 percent:

Source: CNBC

In terms of sectors, the agriculture sector rose by 3.8 percent, while the services sectors was the most impressive growing 8.4 percent. The secondary sector expanded by 6 percent:

Source: CNBC

Industrial production, which has long been the driver of China's boisterous economic activity, climbed 6.2 percent compared to the previous year.

Manufacturing was the best performing subset, showing a 7 percent increase, followed by a 3.3 percent increase for mining, and a 1.7 percent growth in electricity, heat, gas, and water subset.

Investing in infrastructure, the essential facet of China's efforts to buoy the economy after the global financial crisis, continued, although the pace was a bit slower from the first half of the year.

Investments by state holding enterprises indicated a rise of 11.4 percent, with private investments being up by 10.4 percent, accounting for 64.8 percent of the total investment.

Wages continued to increase for both rural and urban citizens, although the pace, as expected, was quicker for residents in villages given the lower absolute levels.

For rural workers, wages climbed by 8.1 percent after adjusting for inflation and while urban residents saw their wages rise 6.8 percent.

More stimulus

"As growth slows and risk of deflation heightens, we reiterate that China needs to cut reserve requirement ratio (RRR) by another 50bps in Q4," CNBC cited ANZ economists Li-gang Liu and Louis Lam as saying. A basis point is 1/100th of a percentage point.

"Looming deflation risk suggests that the People's Bank of China will also adjust the benchmark interest rates, especially lending rate, down further."

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