Data indicates China's recovery on firm footing

Updated: 2013-11-12 14:44


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Data indicates China's recovery on firm footing

Two buyers examine products for Christmas in Yiwu, Zhejiang province. Thanks to stronger demands from the United States and European Union. China's exports in October increased 5.6 percent year-on-year, the General Administration of Customs said on Friday. [Photo / China Daiy]

According to the NBS, China's urban fixed-asset investment, another economic growth driver, expanded 20.1 percent year on year to 35.17 trillion yuan in the January-October period.

China's exports, the third economic driver, rebounded more than expected to 5.6 percent year- on-year in October, from the year-on-year contraction of 0.3 percent in September, according to customs figures.

Also in October, China's industrial added value growth accelerated to 10.3 percent from a year earlier, the second-highest this year and 0.1 percentage points less than that for August.

China uses industrial added value to measure business activities of designated large enterprises that each have an annual turnover of more than 20 million yuan. It is an important indicator to weigh China's industrial activities and the country's manufacturing-based economy.

"Accelerating industrial production growth, steady consumption and investment demand, together with a rebound in exports suggest that China's growth recovery is on a firm footing," an HSBC research team led by chief China economist Qu Hongbin said in a note.

The rebound of China's export growth in October beat market expectations and provided a temporary relief for China's external outlook, but caution is still warranted in the coming months, Qu said.

"On the domestic front, consumption and investment growth remained steady. This could continue to offset the uncertainty in external demand... We expect Beijing to keep the current policy stance in place to maintain steady growth going into 2014," he added.

China's gross domestic product growth accelerated to 7.8 percent in the third quarter this year, up from 7.5 percent in the second quarter and 7.7 percent in the first quarter. In 2012, China's full-year annual growth eased to 7.8 percent, its weakest since 1999.

Lu Ting, chief China economist with Bank of America Merrill Lynch, echoed Qu's judgment.

Data indicates China's recovery on firm footing

October trade figures beat estimates

China's industrial output growth picks up

Fixed-asset investment up 20.1% in Jan-Oct