MNI POLICY: China Economy to Stabilize in Q4: Stats Official

     BEIJING (MNI) - Chinese economy will maintain stable growth into the fourth

quarter after record-low expansion rate of 6% in Q3, said Mao Shengyong,

spokesman of the National Bureau of Statistic at a briefing on Friday.

     Here are major points Sheng tried to make at the presser:

     - There are signs favorable including strengthened PMI, recovery of

infrastructure investment in recent two months, slower deflation of producer

prices and improved car production and sales. A low base of growth in Q4 last

year also helps boost Q4 numbers, Sheng said.

     - Industrial output rebounded in September after companies bumped up

production and sales at the end of the quarter, as well as improved market

outlook. The gain of industrial activities quickened to 5.8% y/y from August's

4.4% gain.

     - Infrastructure investment shows good momentum to rebound in Q4 due to the

early issuance of next year's infrastructure-back local government

special-purpose bonds. 

     - The entire consumer market cannot be considered a downturn, as retail

sales growth, which rose 7.8% y/y in Sept from 7.5% in Aug, didn't account for

service, which would have pushed consumption to over 9%. 

     - Pork-led inflation, which touched the government's 3% annual ceiling, may

not restrict the central bank's ability to use easing tools as core inflation

outside food remains benign.

     - Employment market remains stable amid the slowing growth, with the

surveyed unemployment rate maintaining at 5.2% y/y from last month. This is

because the fast-growing service industry has provided more jobs, said Mao.

     - Easing trade tensions with the U.S. may help improve export outlook.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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