China GDP Growth Softens Less Than Expected

(RTTNews) - China's economic growth eased less than feared in the third quarter, indicating that the country remains on track to achieve its full year target despite tariff tensions and deepening property market downturn.

Gross domestic product expanded 4.8 percent on a yearly basis in the third quarter after rising 5.2 percent a quarter ago, the National Bureau of Statistics reported Monday. Nonetheless, the pace of growth was slightly better than forecast of 4.7 percent.

Through the first three quarters of the year, the economy grew 5.2 percent driven by strong industrial production. The figure was stronger than Beijing's full year growth target of around 5 percent.

On a quarterly basis, GDP was up 1.1 percent in the third quarter, outpacing the expected growth of 0.8 percent and the second quarter's 1.0 percent expansion.

"With China on track to hit this year's growth target, we could see less policy urgency," ING economist Lynn Song said.

"But weak confidence translating to soft consumption, investment, and a worsening property price downturn still needs to be addressed," the economist added.

In September, industrial output climbed 6.5 percent from a year ago, much faster than the 5.2 percent growth posted in August.

However, annual growth in retail sales eased to 3.0 percent from 3.4 percent in the previous month. Sales were forecast to grow 2.9 percent. During January to September, fixed asset investment dropped 0.5 percent after rising 0.5 percent in the January to August period. Economists had forecast a marginal growth of 0.1 percent.

The downturn in the property market continued further. Property investment plunged 13.9 percent in the nine months to September period from the same period last year.

Elsewhere, the People's Bank of China left its benchmark interest rates unchanged for the fifth straight month. The PBoC retained its one-year loan prime rate at 3.0 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was maintained at 3.50 percent.