China's business climate index fell for the second quarter in a row during the final three months of 2008 as economic conditions deteriorated sharply, the National Bureau of Statistics said.

The index was 107, vs. 128.6 in the third quarter. The index was 137.4 in the second quarter and 136.2 in the first quarter, the bureau said.

The index ranges from zero to 200. A reading above 100 shows economic expansion, while a reading below 100 indicates contraction. The survey began in 1998.

The index for industry was 98.5, down 27.3 points quarter-on-quarter. The indices for wholesalers and retailers and property developers slid by 16.4 points and 17.2 points to 127.2 and 101.7, respectively.

The index for domestic publicly traded companies fell 39.4 points to 106.2 and the entrepreneurial confidence index sank 29.2 points to 94.6.

Renowned economist Cheng Siwei told a conference Thursday the economy grew about 8 percent during the fourth quarter of 2008, down from 9 percent in the third quarter and 10.4 percent in the first half.

China is targeting 8 percent gross domestic product growth for 2009 to ensure sufficient jobs and safeguard social stability, Liu Mingkang, Chairman of the China Banking Regulatory Commission, said on Dec. 13.

To support the weakening economy, China has cut lending rates considerably since mid-September and unveiled a 4 trillion yuan (US$585 billion) fiscal stimulus package in early November.

The economy will start to recover in the second half of the year, as the massive stimulus takes effect gradually, and regain full steam in 2011, Cheng said.

(Xinhua News Agency January 9, 2009)