20 Oct 2012

Chinese economy still slowing

10:31 am on 20 October 2012

China's economy has slowed for a seventh quarter as problems in Europe and the United States hurt demand for its goods.

The annual rate of growth was 7.4% in the third quarter, down from 7.6% in the previous three months.

However, there were signs that the economy was stabilising and rebounding.

Industrial production rose by 9.2% in September from a year earlier. That was up from 8.9% growth in August.

Retail sales during the same month were 14.2% higher than a year earlier, signalling that domestic consumption was growing.

In Hong Kong, the Hang Seng stock index rose 0.7% on the news and shares climbed by 1.2% in Shanghai.

The BBC reports China has announced various stimulus measures in recent months aimed at boosting domestic consumption. Interest rates have been cut twice since June.

Infrastructure projects worth more than $US150 billion have also been approved/