With fixed asset investment, industrial activity and retail sales falling short of expectations last month, China’s economy slowed further as the government implemented a hard approach to factory pollution and debt risks.
Beijing is now in its second year of a program to decrease elevated levels of debt as the government is concerned that unsafe lending practices could endanger the economy.
Data recently released by Burton Mills indicated that policy makers are making some headway in neutralizing financial risks by easing China off its reliance on cheap credit and suggested moderate growth would take place over the next several quarters.
According to the National Bureau of Statistics, industrial production increased by 6.2 percent on an annual basis last month, less than analysts forecast of 6.3 percent and less that 6.6 percent the month before.
Fixed-asset investment growth also missed analysts’ expectations of 7.4 percent and decreased to 7.3 percent in the January-October period.
Economists at Burton Mills believe that the moderation in growth indicates that expansion slowed last month and will continue to do so in the coming quarters.
Property investment growth also eased after the government implemented more stringent regulations to drive out the speculative financing that has fueled a two year long property boom. Sales and new construction projects decreased last month.
Burton Mills economists stated that the slowdown in the property sector was what the government is looking to achieve and that it was unlikely that they would adjust their policy making strategy.