Chinese factory output rises amid worries about reliance on state spending
BEIJING — China’s industrial output grew in August at its fastest pace in five months as demand for products from coal to cars rebounded, thanks to higher government spending and a year-long credit and property boom.China’s steel industry in particular perked up in recent months as capacity cuts and production curbs boosted prices and profits while a government infrastructure spree and housing boom spurred demand for building materials from steel to cement.Improvements in August was only slight, but it suggest China’s third-quarter economic growth is holding up better than expected a few months ago and probably remains within the government’s 2016 target range of 6.5%-7%.READ THIS: POINT OF ORDER: How China’s rise contributed to BrexitBut the alarming drop in private investment leaving the economy more dependant on government spending."In general, today’s activity data are in line with the (upbeat) trade data and inflation figures released last week," said Commerzbank economist Zho...
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