2018.10.1904:14:00UTC+00China's Q3 GDP Growth Weakest Since 2009

China's economy grew at the slowest pace since the global financial crisis in 2009 reflecting softening activity across manufacturing and investment amid escalating trade tensions and government's measures to rein in excessive lending. Gross domestic product expanded 6.5 percent year-on-year in the third quarter, slower than the 6.7 percent growth seen in the second quarter, the National Bureau of Statistics reported Friday.

GDP growth was also slower than the 6.6 percent expansion expected by economists. Nonetheless, this was in line with the government's full year target of about 6.5 percent.

Quarter-on-quarter, economic growth eased marginally to 1.6 percent from a revised 1.7 percent in the second quarter.

In September, industrial production advanced 5.8 percent annually after rising 6.1 percent in August. The rate was expected to moderate marginally to 6 percent.

Meanwhile, annual growth in retail sales improved to 9.2 percent in September, while it was expected to remain unchanged at 9 percent.

During January to September period, fixed asset investment rose 5.4 percent following a 5.3 percent rise in January to August.

The urban monthly jobless rate held at 4.9 percent at the end of September.

Julian Evans-Pritchard, an economist at Capital Economics, said he anticipates a further loosening of both monetary and fiscal policy in the coming months, which should put a floor under growth by about the middle of 2019.

The People's Bank of China has reduced the reserve requirement ratio for banks four times this year to cut financing costs and prop up economic activity.

The International Monetary Fund forecast China to grow 6.6 percent this year, but the forecast for next year was cut to 6.2 percent from 6.4 percent.