INDUSTRY in China performed unexpectedly well in August, with the highest growth rates in nearly a year and a half revealed yesterday.
The Chinese economy has appeared to be more resistant to the effects of the looming tightening of US monetary policy, with less adverse reaction than other emerging markets in recent months.
Production was up by 10.4 per cent in comparison to the same month last year, bucking expectations for a slower rate. Retail sales were also up over the year, rising by 13.4 per cent in the 12 months to August, the fastest increase recorded in 2013.
The government’s current target for growth, 7.5 per cent this year, is more modest than previous years have seen, but it now looks more likely that the country will comfortably meet the level.
Berenberg’s Robert Wood suggested that the economic situation was still fragile: “Caution is needed given the problems affecting some of China’s close neighbours as the Fed gets closer to tapering its asset purchases. But low inflation in China means the authorities have stimulus options available if they need to use them.”