Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




POLITICAL ECONOMY
China industrial output growth hits 17-month high
by Staff Writers
Beijing (AFP) Sept 10, 2013


China bank lending rises in August: central bank
Shanghai, China (AFP) Sept 10, 2013 - China's bank lending picked up in August from the previous month, central bank data showed Tuesday, but analysts cautioned that credit may still moderate in the coming months.

Chinese banks extended 711.3 billion yuan ($116.2 billion) in new loans last month, the People's Bank of China said in a statement.

That compares with bank lending of 699.9 billion yuan in July.

The August figure is slightly above market expectations of 710 billion yuan, according to a survey of 11 economists by Dow Jones Newswires.

"Overall, we see stable and robust credit growth," Bank of America Merrill Lynch economist Lu Ting wrote in a research report on Tuesday.

"Looking forward, headline new loans... will likely moderate towards year-end," he said, adding lending traditionally slows at that time on seasonal factors.

A cash crunch in June spooked Chinese financial markets and raised worries over slower loan growth.

"Despite concerns of another liquidity squeeze at quarter-end, we believe the chance of a repeat of the June interbank liquidity squeeze is extremely small," Lu said.

"The (People's Bank of China) will do whatever it can to prevent a possible liquidity squeeze," he added.

The central bank ordered lenders to strengthen liquidity management at the height of the crunch and in late July it injected 17 billion yuan to ease shortages in the banking system.

The brief turmoil in June underscored rising concerns over excessive lending by banks and other weaknesses in China's financial system, including opaque non-bank forms of lending, often called "shadow finance".

Analysts believe the government is keen to crack down on excessive lending as it seeks to rebalance the economy away from traditional big-ticket spending and ensure sustainable economic growth.

China's industrial production rose at its fastest in 17 months in August, authorities said Tuesday, the latest in a series of better-than-expected indicators pointing to a pick-up in the world's second-largest economy.

The main gauge of output at China's factories, workshops and mines increased 10.4 percent year-on-year in August, the National Bureau of Statistics (NBS) said, the strongest growth since March 2012.

The finding was ahead of market expectations, with the median forecast in a poll of 11 economists by Dow Jones Newswires predicting a 9.9 percent rise.

Along with other data released Tuesday, the figure is the latest sign that the Chinese economy is gathering momentum after a painful first six months.

"We got a picture of a broad-based recovery from external demand to domestic demand, and from consumption to investment," Bank of America Merrill Lynch economists said in a research note.

"Given the current growth momentum, the Chinese government will surely be able to achieve its 7.5 percent growth target," they added.

Over the first eight months of the year, output was up 9.5 percent on the same period in 2012, the NBS said.

Retail sales, a key indicator of consumer spending, rose 13.4 percent year on year in August, it added, ahead of a forecast of 13.2 percent in the Dow Jones Newswires poll.

The statistic was up 12.8 percent in the first eight months of the year, the NBS added.

Fixed asset investment, a measure of government spending on infrastructure, increased 20.3 percent in the first eight months of the year, the NBS said, a fraction ahead of expectations of 20.2 percent.

The strong figures come on the back of recent government steps to boost sentiment after economic growth eased to 7.5 percent in April-June, from 7.7 percent in the first quarter of the year and 7.9 percent in the final three months of 2012. China's economy expanded 7.7 percent last year, its slowest growth since 1999.

But hopes have been rising recently that the corner has been turned.

On Monday export growth data came in above forecasts in August while the producer price index, which measures goods prices at the factory gate, rose for the first time in six months and after five months of deflation.

And last week the official purchasing managers' index (PMI), a measure of manufacturing activity, also strengthened in August to its highest level in 16 months.

Authorities have so far been reluctant to introduce large-scale stimulus as they aim to move the economy away from dependency on big-ticket investments and more towards consumer demand as the key growth engine.

In late July some supportive measures including reducing taxes on small firms and encouraging railway development were announced.

But despite the upbeat readings for last month, some analysts voiced worries over whether the rebound could endure, saying it depended again heavily on an acceleration in infrastructure investment.

"The dominating role of infrastructure played in the sudden turn-around confirms our concern over the sustainability," said Yao Wei, a Hong Kong-based economist with Societe Generale, in a research note.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
Walker's World: Did the G20 fail?
Dusseldorf, Germany (UPI) Sep 9, 2013
The Group of 20 summit in St. Petersburg, Russia, should have secured three achievements, which had been thoroughly discussed by officials in advance and which had nothing to do with Syria. The first was to agree an international consensus and, if possible, a formal agreement on sharing tax information so international corporations would find it less easy to play the system. This was pa ... read more


POLITICAL ECONOMY
Niger asks for foreign help for flood victims

Olympics: Tokyo 2020 is a bid in the shadow of Fukushima

Italy says Syria crisis to worsen refugee problem

Australian police arrest suspected people smugglers

POLITICAL ECONOMY
U.S. Army Awards Lockheed Martin contract for Counterfire Radar Production

World's First Full Color 3D Desktop Printer Destined For High Schools

Lockheed Martin-Built A2100 Satellites: Over 400 Cumulative Years In Orbit And Counting

GSAT-7 Satellite Placed in Geosynchronous Orbit

POLITICAL ECONOMY
Can we save our urban water systems?

Why does the area over southern high and sub tropical latitudes have more frequent and stronger rains?

Network of Unmanned Undersea Platforms Would Assist Manned Vessels

Eastern US water supplies threatened by a legacy of acid rain

POLITICAL ECONOMY
East Antarctic Ice Sheet could be more vulnerable to climate change than previously thought

On warming Antarctic Peninsula, moss and microbes reveal unprecedented ecological change

Arctic Sea Ice Update: Unlikely To Break Records, But Continuing Downward Trend

West Antarctica ice sheet existed 20 million years earlier than previously thought

POLITICAL ECONOMY
Study forecasts future water levels of crucial agricultural aquifer

An alga stressed by the light

S. Korea widens Japanese fish ban over contamination fears

Chinese dairies seek French tie-ups to shore up image

POLITICAL ECONOMY
Japan scraps stranded tsunami ship

Lorena weakens into tropical depression off Mexico

Power outages, landslides after strong Guatemala quake

Monster volcano is one of the biggest in Solar System

POLITICAL ECONOMY
Sudan bombs S. Sudan buffer zone position, kills 2: Juba

Origin of state of ancient Egypt given new time line

Defence chiefs meet over DR Congo conflict

Kenyan soldiers kill al-Shabaab guerillas

POLITICAL ECONOMY
Hidden shell middens reveal ancient human presence in Bolivian Amazon

Look at what I'm saying

The true raw material footprint of nations

Researchers reveal hunter-gatherers' taste for spice




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement