China's economic growth slowed in the second quarter, as massive stimulus spending was scaled back and moves to rein in soaring property prices started to bite.
Gross domestic product in the world's third-largest economy maintained double-digit growth for the third quarter in a row, expanding 10.3 percent in the three months to June, according to the National Bureau of Statistics.
But the figure marked a slowdown from the blistering 11.9 percent growth in the first quarter and the 10.7 percent in the last three months of 2009, after Beijing introduced a range of measures to avert economic overheating.
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Economy 'losing steam'
The economy grew 11.1 percent in the first half of 2010 compared with the same period a year earlier, the data showed.
The latest figures add to mounting evidence that the Chinese economy is losing steam, although Beijing has so far shown no intention of reversing tightening policies.
"Generally speaking, the economy is running well," NBS spokesman Sheng Laiyun told reporters, but added: "There are still a lot of difficulties and problems in the course of economic recovery."
The nation's closely watched consumer price index, the main gauge of inflation, rose 2.9 percent on year in June alone, compared with 3.1 percent in the previous month, the statistics bureau said.
Inflation up
The slowdown in inflation added to mounting evidence that the government's measures to avert economic overheating were kicking in.
Inflation was up 2.6 percent in the first half of 2010 from a year earlier.
China's fixed asset investment in urban areas, a measure of government spending on infrastructure and a key driver of the economy, rose 25.5 percent in the first half from the same period last year, the government said.
Industrial output from the country's millions of factories and workshops increased 17.6 percent on year in the six-month period.
Retail sales, a key measure of consumer spending, rose 18.2 percent in the first half of 2010 from a year ago.
Tax rebates removed
Beijing has so far shown no intention of reversing tightening policies despite signs the economy is losing steam, and has begun to rein in the huge stimulus spending put in place in the wake of the global financial crisis.
In recent weeks, China also has loosened its grip on the yuan exchange rate by allowing the currency to trade more freely against the dollar, while export tax rebates on some products have been removed.
Chinese Premier Wen Jiabao said last month he believed the economy was moving in the "expected direction", which was interpreted as a sign that the government planned to stick to current policies.
Wen's comments came after President Hu Jintao, in a speech to the Group of 20 summit in Canada, called for caution in exit strategies from economic stimulus programmes to safeguard the global recovery.
