China's growth is finally at a slow down after a continuous pattern of posting high growth rates one after another. Economic growth in the third quarter is at 11.5%, down from a record high of 11.9% in the second quarter. Combined GDP is now at a total of 16.6 trillion yuan, or $2.2 trillion.
The manufacturing sector grew the fastest, at 13.5%, while the service industry is catching up at 11%. Retail sales rose to 6.38 trillion yuan this quarter, an increase of 15.9% year on year. Note that disposable income per capita in urban areas rose 13.2%, 3.2% faster than last year. This might be the start of a new consumer spending spree.
The country's growth is definitely a benchmark for investors worldwide, as signs of uncontrollable inflation has gone up in recent years (+4.1% in the third quarter alone). Equity prices in Shanghai and Hong Kong are now trading at extraordinary multiples. This is perhaps proof that the state's macroeconomic policies are working as planned to stop the economy from overheating.
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