Page 24 - ARUBA TODAY

Tuesday 18 april 2017 BUSINESS
A24

China’s economy gains steam; 1Q growth fastest since 2015

KELVIN CHAN abated after U.S. President grew 10 percent. Industrial based more on consumer growth target — a good
AP Business Writer Donald Trump toned down production rose 6.8 per- demand but tend to open sign for China’s communist
HONG KONG (AP) — Chi- his previously antagonistic cent, including a stronger- the spending and credit leaders, who don’t like sur-
na’s economic recovery prises and are preparing
is gaining traction, with for a twice-a-decade party
growth rising to its fastest congress in the autumn to
pace in over a year in Jan- appoint new leaders.
uary-March. “The 6.5 percent target
The 6.9 percent annual this year, you could say it’s
pace of expansion for the more important than ever,
world’s second-largest because of the political re-
economy, reported Mon- shuffle later this year,” said
day, surpassed econo- Amy Zhuang, chief Asia
mists’ forecasts and was analyst at Nordea Mar-
an improvement from 6.8 kets. “At least being able
percent growth in the last to maintain the stability in
quarter of 2016. growth is very, very impor-
Growth last was that strong tant for Beijing.”
in July-September of 2015. On a quarter-to-quarter
Analysts said government basis, which is how other
spending and a property major economies report
boom spurred by easy data, the economy lost
credit were the main fac- steam, expanding just 1.3
tors helping to driving stron- percent. That’s slower than
ger demand. 1.7 percent in the fourth
China saw its slowest quarter of 2016.
growth in nearly three de- Workers assemble trucks at a plant of JAC Motors in Fuyang in central China’s Anhui province The economists at ANZ
cades in 2016, at 6.7 per- Monday April 17, 2017. China’s economic recovery is gaining momentum, with growth ticking up said such figures should be
cent. The official full-year to a 6.9 percent annual pace in the first three months of the year, lifted by government stimulus viewed cautiously because
economic growth target and a property boom. they might reflect changes
for 2017 is 6.5 percent. (Chinatopix Via AP) in how the government
“Currently, China’s econo- made adjustments for sea-
my is demonstrating good comments against Beijing. than- expected 7.6 per- taps at times when growth sonal factors.
signs of pickup in growth, A summit earlier this month cent year-on-year gain in appears to be slowing too Economists say they expect
overall price stability, ex- with Chinese President Xi March. much. the boost from the govern-
pansion in employment Jinping ended calmly, and Although exports have “The question we need to ment’s policies and the
and improvement in the in- the U.S. Treasury Depart- also shown sharp improve- ask is whether this invest- property boom to persist for
ternational balance of pay- ment did not label China a ment, strong lending and ment-led model is sustain- a few more months before
ments,” Mao Shengyong, a currency manipulator in its investment figures suggest able as the authorities have fading later in the year.
spokesman for the National latest assessment. Beijing is relying on its tra- trouble taming credit,” said Real estate plays an outsize
Bureau of Statistics, told re- During the first quarter, in- ditional strategy of power- Raymond Yeung and Da- role in fueling growth in the
porters in Beijing. vestment in fixed assets ing growth through gov- vid Qu, economists at ANZ. wider Chinese economy by
Fears of being dragged such as factories expand- ernment stimulus. China’s The latest figures indicate spurring knock-on demand
into a trade and curren- ed 9.2 percent from a year leaders have been trying China’s economy is on in the manufacturing and
cy war with the U.S. have earlier, while retail sales to shift to an approach track to meet its official service sectors.
US homebuilder sentiment slips, but overall outlook positive

ALEX VEIGA ing slightly less optimistic look remains favorable. measure of traffic by pro- weeks, mortgage rates
AP Business Writer about their sales prospects, The National Association of spective buyers. have been edging lower,
U.S. homebuilders are feel- even as their overall out- Home Builders/Wells Fargo Despite the decline in the making the cost of home
builder sentiment index re- latest builder sentiment loans less expensive.
leased Monday slipped to survey, sales of new U.S. The average 30-year fixed
68 this month. That’s down homes have been robust mortgage rate has fallen
three points from 71 in this year and are expected the past four weeks, de-
March, when it jumped to to continue climbing. clining to 4.08 percent last
the highest level since June Low mortgage rates and week. That’s up from an
2005. Readings above 50 a solid job market have average of 3.65 percent all
indicate more builders view helped drive home sales last year, but still low by his-
sales conditions as good steadily higher. torical standards.
rather than poor. The index Sales of new U.S. homes This month’s builder index
has been above 60 since increased in February at was based on 307 respon-
September. the fastest pace since July, dents.
The April reading fell short reaching a seasonally- A measure of current sales
of analyst predictions. They adjusted annual rate of conditions for single-family
expected the index to dip 592,000. homes fell three points to
to 70, according to Fact- That sales pace was nearly 74, while a gauge of traf-
Set. 13 percent higher than in fic by prospective buyers
Readings gauging build- the same month last year. declined one point to 52.
ers’ view of sales now and A pickup in mortgage rates Builders’ view of sales over
over the next six months last fall helped spur sales the next six months slid
also edged lower, as did a early this year. In recent three points to 75.