China beats growth forecast

China's economy grew four point five percent in the third quarter, beating the consensus forecast for four point four percent and improving from four point three percent in April-June.

Exports drive the recovery

A surge in exports and strong factory activity offset weak domestic demand. China's trade surplus widened more than expected in September, keeping the country on track to surpass last year's record one point two trillion…

Manufacturing strengthens, spending lags

Industrial output grew five point five percent in September, up from five point two percent in August and the strongest pace in six months.

Two-speed economy masks weakness

China's strategy of redirecting credit from property to high-tech industries has created strong factory output and exports masking weak consumption and private investment. Fixed-asset investment declined seven point two percent in the first nine months.

“The key macroeconomic message is that China's economy is still supply- and production-side driven.”

Exports face mounting pressure

Beijing has leaned heavily on exports for growth this year, but that engine faces growing pressure as domestic demand remains weak and trade tensions with the European Union escalate.