Chinese Economy Slows in Third Quarter

Posted October 18th, 2011 at 12:55 am (UTC-5)
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China's rapid economic growth slowed slightly between July and September, due to slowdowns in Europe and the United States and inflation-fighting measures at home.

The government's statistics bureau says the nation's economy grew at a 9.1 percent annual pace in the three months through September 30. That compares to 9.5 percent growth in the previous three months.

China's booming economy has been a major engine in the growth of the global economy, but the sovereign debt crisis in Europe and high unemployment in the U.S. have weakened demand for Chinese-made goods.

Chinese policymakers have also taken steps to cool the economy, including a series of interest rate hikes and requirements that the nation's largest banks increase their cash reserves.

The statistics bureau says industrial output increased 13.8 percent in September from a year earlier, while fixed asset investment, which measure's government spending on infrastructure, rose 24.9 percent in the first nine months of this year.

Retail sales rose 17.7 percent last month from a year earlier.