Growth in China's tax revenue slowed in the third quarter due to government moves to cool the economy, state media reported. Overall the growth in tax earnings dropped to 25.8% in Q3, down from 26.9% in Q2. In September the decline was more apparent, growth slipping to 21.4%. According to the State Administration of Taxation, the cooling measures have had the most impact in the steel and construction industry, both of which have been targeted by the government in its drive to slow over-investment. In the steel sector, growth in value-added tax revenue slowed from 55% in Q1 to 18.7% in Q3. In building materials, growth in VAT earnings dropped from 51.5% to 24.1%.