China’s Economy Accelerating Again

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Sept. 13 – China’s August economic figures unexpectedly rebounded after several months of slow growth.

China’s industrial value-added output growth improved to 13.9 percent year-on-year in August, up from July’s 13.4 percent according to data released by the National Bureau of Statistics on Saturday.

NBS spokesperson Sheng Laiyun said that the August data was a mild rebound from lower growth in July and June, suggesting China’s industrial production stabilized from fast expansion in the first half.

Retail sales were also up last month, accelerating to 18.4 percent while urban fixed income also saw strong growth, up 24.8 percent year-on-year.

With the strong economic figures came the continued rise in inflation. The consumer price index rose 3.5 percent from a year earlier in August, up from 3.3 percent in July, the biggest increase in the CPI since October 2008.

Food prices, which increased 7.8 percent from a year earlier were the main contributor, while non-food prices increased by only 1.5 percent.

Imports were up by 35.2 percent in August, reaching US$119.27 billion. Export growth fell to 34.4 percent, down from a high of 38.1 percent in July, reaching US$139.3 billion.

“The overall economy is stable and sound. It is heading in the direction expected and as set by the government’s macro-economic controls,” Sheng said.