Chinese industrial production expanded in August at its slowest pace since the global financial crisis, increasing pressure on the central government to hit its target of 7.5 per cent economic growth for 2014.
The National Bureau of Statistics said industrial activity had grown 6.9 per cent in August from the same month a year ago, a slower pace than the 9 per cent rise recorded in July. It blamed the lower growth on weak global demand and domestic pressures, including stresses in the housing market.
ANZ bank said the data “reinforced our view that China’s growth momentum has decelerated faster than anticipated” on the back of a sluggish property market and slowing credit expansion. It added that China generally needed to achieve 9 per cent growth in industrial production to boost the economy by 7.5 per cent.