Economic

China: the economy is picking up

A new impetus for the Chinese economy: The industry produced in August surprisingly a lot of, the retail sector increased its turnover considerably and, in particular, the demand for cars picked up strongly.

The Manufacturing companies reduced their production by 6.3 percent compared to the same month last year, according to the above, as the statistics office announced on Tuesday in Beijing. This was the strongest growth in five months. It exceeded the forecasts of analysts, who had expected on average with a plus of 6.1 percent.

Behind the state infrastructure plug investment, as well as the brisk construction activity. You drove the demand for construction materials. Add to that a recovery in the steel industry, after this has restricted their capacity for a long time. “This fits in with the good economic data last week,” said Commerzbank Economist Zhou Hao. Imports rose for the first time in nearly two years.

Tax benefits expire soon

Significantly and unexpectedly, the retail sales also increased. The Plus was in August, from 10.6 per cent in both the estimates of experts, as well as the increase in the previous month. Especially good were the shops in the dealerships, which increased their sales as strong as for three and a half years. Background the end-of-year, expiring tax incentives, which attracted many drivers in the car houses.

The investment in facilities such as factories rose in the first months of the year by 8.1 percent, slightly stronger than assumed. The investment in real estate increased by 6.2 percent. “The recovery in the real estate market means that this sector of the economy will contribute to growth this year,” said Economist Ma Xiaoping of the HSBC Bank.

China has set itself for this year an economic growth of between 6.5 and 7.0 percent. In the second quarter of the second largest economy in the world after the United States by 6.7 percent, slightly more robust than expected. Nevertheless, there is scepticism whether China can digest the structural change and the consequences of a Brexit vote. The International monetary Fund expects a continuous slowdown in the growth Rates of below six per cent by 2020.

ul/hb (rtr)