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China Q3 GDP grows 6.7% as construction booms

Staff Writer | October 20, 2016
China's economy expanded at a steady 6.7 percent in the third quarter and looks set to hit Beijing's full-year target.
China GDP
Asia   Government spending in China rose 11.3 percent
That was fueled by stronger government spending, record bank lending and a red-hot property market that are adding to its growing pile of debt.

The economy grew at the same clip in the third quarter year-on-year as in the first and second quarters, as analysts polled by Reuters had expected.

Government infrastructure projects and the property boom have spurred prices and demand for raw materials and goods from cement and steel to furniture.

On a quarterly basis, it grew 1.8 percent, again in line with expectations but easing slightly from the previous period.

Real estate investment accelerated in September and home sales soared, highlighting persistent investor demand even as more cities tighten measures to curb prices.

Property investment growth ticked up to 7.8 percent in September on-year, and property sales surged 34 percent, though new construction starts fell 19.4 percent, suggesting sentiment among builders may be shifting as the government looks to cool the buying frenzy.

Government spending in China rose 11.3 percent in September from a year earlier while revenue rose 4.9 percent, the Ministry of Finance said

In August, spending was 10.3 percent above a year earlier, and revenue increased 1.7 percent.