China’s economy grew at its quickest pace this year between July and September in a rebound fuelled largely by investment, although signs are already emerging that the pickup in activity may lose some vigour.
GDP rose 7.8 per cent from a year earlier, official data showed, marking only the second quarter in the last 10 in which growth has accelerated.
A fall in exports in September, and easing growth in factory output and retail sales suggested the economy was already slowing down at the end of the quarter. Authorities are also expected to cool credit growth as inflation pushes to a seven-month high, another factor analysts say will drag on economic activity. “We believe the People’s Bank of China will slightly shift its monetary policy from a moderate expansion in the third quarter to a neutral stance,” said Ting Lu, an economist at Bank of America-Merrill Lynch.