China's economic growth declines to 6-year low

The AP reports:

China's economy decelerated in the latest quarter but stronger spending by consumers who are emerging as an important pillar of growth helped to avert a deeper downturn.

The world's second-largest economy grew by 6.9 percent in the three months ended in September, the slowest since early 2009 in the aftermath of the global financial crisis, data showed Monday. That was down from the previous quarter's 7 percent.

Weakening trade and manufacturing have fueled concern about possible job losses and unrest. The communist government has cut interest rates five times since last November in an effort to shore up growth.

The latest data highlight the two-speed nature of China's economy in the midst of a marathon effort by the Communist Party to nurture self-sustaining growth based on domestic consumption and reduce reliance on trade and investment. Manufacturers are shrinking and shedding millions of jobs while consumer-oriented businesses expand.

In September, growth in factory output slowed to 5.7 percent from August's 6.1 percent. At the same time, retail sales growth rose to 10.9 percent from July's 10.5 percent. E-commerce spending leaped ahead, rising 36 percent in the third quarter over a year earlier.

"Continued downward pressures from real estate and exports caused GDP growth to drop," said Louis Kuijs of Oxford Economics in a report. "But robust consumption and infrastructure prevented a sharper slowdown."

A growth decline.