China economic growth slows to a 27-year low

China's GDP growth slows to 6% in 3rd quarter, lowest in 27 years

China's GDP growth slows to 6% in 3rd quarter, lowest in 27 years

China's development slumped to six per cent within the third quarter of 2019, its lowest degree in nearly three a long time, because the world's second largest financial system struggled to beat the influence of a bruising commerce conflict with the U.S. and sluggish home demand, in accordance with official knowledge launched on Friday.

But the efforts have not been enough to offset the blow from softening demand at home, which highlights the struggle leaders have in their drive to recalibrate the economy from one driven by exports and investment to one built on consumer spending.

The expansion was in keeping with the federal government's annual goal of 6-6.5 per cent set for 2019, the official Xinhua information company reported.

It was the weakest level since China started reporting data by quarters in 1993.

The US and China have recently signalled some signs of progress toward resolving the bruising trade war, with both sides reaching a "phase one deal" earlier this month. Imports contracted for the fifth month in a row. Even without the drop off in exports to the US, the economy is likely to continue struggling, with deflationary pressures hitting company profits and falling imports indicating that domestic demand is weak.

Consumer prices have spiked due to a disease outbreak in China's vast pig herds that is disrupting pork supplies.

But the economy has been slow to respond, with business confidence shaky and local governments facing increasing strains as tax cuts hit revenues, weighing on investment.

Economists are pessimistic about the immediate outlook for China even though there were some bright spots in the September data released on Friday, with retail sales up 7.8% from a year ago and industrial output rising 5.8%.

Analysts polled by Reuters had expected China's gross national product to grow 6.1% from the third quarter of 2018.

Hwabao Trust's Nie does not expect stronger manufacturing to last given slowing global demand, which would suggest a pickup in broader economic growth remains unlikely.

Shortly after the failed negotiations in September, the National Retail Federation's Global Port Tracker forecasted that import container traffic at major US ports are set to plunge by 5.1 percent in October; 8.9 percent in November and a 9.3 percent in December.

If accurate, that would be the slowest pace of growth since 1992.

Private sector fixed-asset investment, accounting for 60 per cent of the country's total investment, grew 4.7 per cent in January to September, compared with 4.9 per cent in January to August.

There were signs from China that these numbers were going to be worrying.

However, property sales by floor area, a leading indicator of demand, rose 2.9 per cent on year in September, down from 4.7 per cent growth in August, Reuters calculations showed, although still better than the 3.6 per cent fall recorded in the same period last year.

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