China on Track to Hit Growth Target, but Economists Flash Warning Signs

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From The Wall Street Journal:

“BEIJING—China’s economy steadied in November, boosted by industrial production and retail sales, keeping growth on course to hit the government’s target for the year, though economists caution momentum is flagging.

Value-added industrial output, a rough proxy for economic growth, edged up to 6.2% in November from a year earlier, compared with 6.1% in October, according to official data released Tuesday. The reading slightly outpaced a median forecast of 6.0% growth by 14 economists surveyed by The Wall Street Journal.

Investment in factories, buildings and other fixed assets in nonrural areas climbed 8.3% in the January-November period from a year earlier, in line with expectations and matching the January-October period. Retail sales grew by a faster-than-expected 10.8% last month, accelerating from October’s 10.0% increase.

A flood of money from the central bank for lending followed by high levels of government spending on infrastructure has helped to juice the economy’s performance this year, economists said. But, they added, the burst may have come at the expense of next year.”

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