China's economic growth slows but meets forecasts

Oct. 18 (ABC) -- China's economic growth slowed for a seventh straight quarter, and missed the government's target for the first time since the financial crisis.

Australia's biggest trading partner posted growth of 7.4 per cent in the September quarter, down from 7.6 per cent growth in the previous quarter, but in line with analyst forecasts.

The Chinese government is targeting growth of 7.5 per cent this year, which is down on the 9.2 per cent growth the country achieved in 2011.

Despite growth slipping below the target, Chinese authorities remain confident of achieving their economic aims by year end.

In an attempt to return growth to the desired levels, Chinese authorities have cut interest rates twice and cut required bank reserve ratios three times - freeing up an estimated 1.2 trillion yuan ($185 billion) for new lending - and approved over $150 billion in new infrastructure projects.

"This is within expectations, the economy is showing signs of stabilising, that is good news," Hong Kong-based Credit Suisse economist Dong Tao told Reuters.

"We think that with rebounding property markets, stabilising export orders, resuming consumption, we probably have seen the bottom of the economy. The economy can bounce back quickly."

Other official economic data out today showed a slight pick-up in industrial production from 8.9 to 9.2 per cent, while retail sales also beat expectations with a 14.2 per cent rise compared to September last year.

The Australian dollar strengthened slightly on the Chinese data release and was trading around 103.9 US cents at 1:58pm (AEDT).