From rail to retail, growth slows as housing peaks

Fallout from the property industry is taking a toll on many sectors of the economy, reports Bloomberg.

A long-running residential building boom is petering out, with the effects seen from slumping steel and cement prices, to electricity use, rail traffic and retail sales.

The drag will be long-lasting with home completions set to fall by 1 to 3 percent annually from next year to 2025 after almost tripling in 13 years, according to Beijing-based research company Gavekal Dragonomics. A once-in-a-generation shift in demand for housing and an overhang of supply suggest that the government can only cushion the effect with interest rate cuts such as the one announced Nov 21, not reverse it.