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China’s economy expanded quicker than economists forecast

Updated: Oct 19,2015 4:51 PM

China’s economy expanded quicker than economists forecast in the third quarter as the services sector propped up the world’s second-largest economy, suggesting monetary and fiscal stimulus is keeping Premier Li Keqiang’s 2015 expansion target within reach.


A stronger services sector and robust consumption are helping offset weakness in manufacturing and exports. The government has cut interest rates five times since November and boosted infrastructure spending in recent months to keep growth from sliding too far below this year’s target for about 7 percent.


The pace of growth in the services sector quickened to 8.4 percent in the third quarter, while so-called secondary industry — which includes manufacturing — weakened to a 6 percent expansion.


“Between infrastructure investment spending and consumers, the economy is still powering along pretty well,” said Tim Condon the head of Asian research at ING Groep NV in Singapore. The GDP result “has to be a vote of confidence that the stimulus is doing something.”

--Bloomberg on Oct 19