China growth slows but by less than forecast

It was however slower than the 6.3% expansion in the second quarter. Beijing has in recent weeks unveiled a raft of measures, including more public works spending and interest rate cuts, and this latest data suggest that the Chinese government’s growth target of around 5% in 2023 is likely to be achieved. Overall, the the economy expanded 5.2% in first nine month of year. Consumption and industrial activity in September also surprised on the upside. Industrial output in September remained the same as August but, again, stronger than expected at 4.5%. Retail sales also beat expectations, rising 5.5% last month, and accelerating from a 4.6% increase in August. Analysts had forecast retail sales to expand 4.9%. The only cloud in the picture: fixed asset investment grew 3.1% in the first nine months of 2023 from the same period a year earlier, missing expectations for a 3.2% rise. It expanded 3.2% in the January-August period.

(AI Video Transcript)

China's economy

China's economy grew by 4.9% in the third quarter, which was better than expected but still slower than the previous quarter. This suggests that the Chinese economy is still slowing down, although not as quickly as some economists predicted. Despite this, it is likely that the Chinese government will achieve its target of 5% GDP growth in 2023, as the economy expanded by 5.2% in the first nine months of this year.

China's consumption and industrial activity

In September, both consumption and industrial activity in China exceeded expectations. Industrial output grew by 4.5% from the previous year, surpassing the projected 4.3% reading. Retail sales also outperformed, with a 5.5% increase compared to a 4.6% rise in August. This is a positive sign that the Chinese government's efforts to stimulate spending and boost the economy are working.

However, there was a slight setback in fixed asset investment, which only increased by 3.1% in the first nine months of the year, falling short of the estimated 3.2% growth. This suggests that investment activity in China may be slightly weaker than expected.

Chinese yuan

In terms of market trading, the exchange rate between the US dollar and the CNY has been relatively stable. This means that there has been limited market movement and investors have not been making significant changes in their trading. Overall, China's economic data shows some areas of growth exceeding expectations, but there are still signs of a slowdown. The Chinese government's efforts to stimulate the economy have had some positive results, but certain sectors, like fixed asset investment, are still weaker than projected.