China's factory output and retail sales grew at a faster pace in August, but tumbling investment in the crisis-hit property sector threatens to undercut a flurry of support steps that are showing signs of stabilising parts of the wobbly economy.
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NewsTranscript
00:00 China's factories are getting busier and that is offering hope for a recovery in the
00:05 country's wobbly economy. Data out Friday showed industrial output rose 4.5 per cent
00:11 in August from a year earlier. That was better than expected and up on the month before.
00:18 Retail sales provided a positive surprise too. They jumped 4.6 per cent, beating forecasts
00:24 by a wide margin. Officials said the figures were encouraging.
00:28 Statistics Bureau spokesperson Fu Lingui said problems remained, including weak demand.
00:35 But he said growth momentum was gradually building.
00:42 Property is the big worry. China's real estate sector remains under huge pressure amid tumbling
00:47 investment and sales. Giant developers like Country Garden have been stumbling to avoid
00:53 default on their debts. Reuters calculations show investment in the sector falling by almost
00:59 a fifth in August. Now the uncertain outlook has businesses reluctant to hire, although
01:05 the jobless rate did tick down marginally last month. It all has Beijing under ever
01:11 more pressure to step in with new stimulus measures.
01:15 Analysts at Nomura predict the Chinese government will probably, once again, have to play the
01:20 role of borrower and spender of last resort.
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