Home > Uncategorized > Construction and Real Estate Reveal Problems in China’s Economy – NYTimes.com

Construction and Real Estate Reveal Problems in China’s Economy – NYTimes.com

September 12, 2012 Leave a comment Go to comments

CHENGDU, China — With more than 100 tall cranes on the skyline, this metropolis in western China looks vibrant at first glance despite the country’s sharp economic slowdown.

But only a few cranes — those building national government projects like a high-speed rail line — are floodlit and busy far into the night. The more numerous cranes looming above the skeletons of future high-rises move much less often, even by day, and are dark and deserted by night.

The pattern among Chengdu’s construction cranes is evident across the country. As summer fades into autumn, Beijing is stepping up investment in a bid to rescue the economy, but consumers, businesses and debt-burdened local governments in China are showing little interest in spending money again.

Economic data released on Sunday by the National Bureau of Statistics showed the extent of the problems. Investment in new buildings and other fixed assets is in the doldrums. Manufacturers are retreating from ambitious production goals as they struggle with bloated inventories of unsold goods. Even the service sector, still underdeveloped and widely seen by economists as full of potential, is showing signs of distress.

“Business is slow these days — just look around this shopping center, there are so few people walking around,” said Zhong Yongping, a beautician in downtown Chengdu, as she woke on Thursday from an afternoon nap while she waited for a customer to show up.

via Construction and Real Estate Reveal Problems in China’s Economy – NYTimes.com.

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