Chart of the day: Property fallout looms

The impact on the production chain of the slowdown in the property sector is lagging the property cycle and has become evident since August. The year-to-date retail sales of related sectors were growing at double digits, with those of construction and decoration materials up 14.8 per cent year on year, home appliances rising 12.6 per cent and furniture gaining 16 per cent, whereas floor space sold in the January-July period declined by 7.6 per cent year on year. Unless the correction in the property sector is temporary, the spillover effect will likely intensify in the second half of the year and in 2015.