August 2015 has seen indications of improvement in the Chinese economy. According to the country’s top economic planning agency, China’s power usage, rail shipment and property market are showing signs of improvement and hence signs of stabilizing economy amidst volatility of the market.
“The economy is expected to maintain steady growth and is able to achieve annual economic growth goals,” said NDRC. The NDRC cited data from the State Grid as saying that August 2015 saw total power consumption of China increased 2.47% on the year — the fastest growth so far this year and September 2015 is expected to see steady growth. The average daily rail freight volume rose in August 2015 1.6% when compared to July 2015, according to NDRC.
China’s exports are likely to witness a positive growth in August 2015 from a 8.3% drop in July 2015, the agency said without giving specifics. “The pickup in new orders” — which returned to positive territory in June 2015 — “was driven by a strong rise in the new export orders subcomponent, suggesting that foreign demand may finally be turning a corner,” Capital Economics analysts wrote in a research note.
According to National Development and Reform Commission (NDRC), the effective supportive policies like local government debt swaps, interest rate cuts and property market stimulus will nourish the economy in the coming months and will help strengthen the economic growth.