Inflation And Growth Worries Take Heat Off As Stocks Rebound And Dollar Firms – Investing.com

Inflation And Growth Worries Take Heat Off As Stocks Rebound And Dollar Firms – Investing.com

Economic growth in the world’s second largest economy slowed more than expected in the third quarter as China reported that GDP rose by 4.9% from a year ago, missing forecasts of 5.2%. Power cuts and pressures in the property sector dragged down growth, especially towards the end of the quarter. Industrial output was up just 3.1% year-on-year in September while fixed asset investment slowed for the seventh straight month.

The fallout from the Evergrande debt crisis will likely reverberate through the current quarter as authorities step up efforts to reduce leverage among heavily indebted real estate companies. The energy shortages inflicting businesses won’t be resolved anytime soon either, though the government might deprioritise climate goals so as to ease the rationing.