China economic data show signs slowdown may be easing, as central bank acts to support growth
China has reported its factories picked up their pace and retail sales also gained momentum in August, suggesting the economy may be gradually recovering from its post-pandemic malaise
BEIJING — China's factories picked up their pace and retail sales also gained momentum in August, the government reported Friday, suggesting the economy may be gradually recovering from its post-pandemic malaise.
However, despite busy activity in restaurants and stores, the figures showed continuing weakness in the all-important property sector, where real estate developers are struggling to repay heavy loads of debt in a time of slack demand. Investment in real estate fell 8.8% in August from the year before. The decline has been worsening since the beginning of the year.
Acting to relieve the burden on banks, the People's Bank of China, or central bank, announced late Thursday that the reserve requirement for most lenders would be cut by 0.25 percentage points as of Friday.
That would free up more money for lending, “In order to consolidate the foundation for economic recovery and maintain reasonable and sufficient liquidity,” the central bank said.
Friday's report showed retail sales rose 4.6% in August from a year earlier, with auto sales climbing 5.1%. Retail sales rose a meager 2.5% in July.
Consumers grew more cautious about spending in the past year, even as China loosened stringent policies to contain outbreaks of COVID-19.
Industrial output grew at a 4.5% annual pace, up from 3.7% in July and the fastest rate since April.
“Overall, in August, major indicators improved marginally, the national economy recovered, high-quality development was solidly advanced, and positive factors accumulated,” Fu Linghui, spokesperson for the
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