BEIJING (dpa-AFX) - A leading indicator of Chinese economic activity continued to increase in September, supported by credit growth and real estate activity, the Conference Board said in a report on Monday.
The leading economic index or LEI for China increased 0.9 percent to 271.8 in September. This followed a 0.8 percent increase in August and a 1.4 percent rise in July. Four of the six components contributed positively to the index.
'Relatively strong credit expansion in September along with a bounce back in real estate activity helped to support LEI growth this month,' said Andrew Polk, Conference Board's China economist in Beijing.
The coincident economic index, which measures current economic activity, increased 0.2 percent in September to 248.9. This was slower than a 1.2 percent increase in August and a 1.1 percent gain in July.
Weaker growth in current activity indicates that the third quarter recovery from the slowdown earlier this year has already begun to lose some steam, Polk said.
'Continued reliance on policy-driven growth, rather than a fundamental resurgence in real economic activity, will likely lead to a slower economic expansion in the fourth quarter and into the beginning of 2014,' the economist noted.
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