Industrial Production News
- Industrial production slows down
Date: 14-Dec-2007 Sources: (People's Daily)
China's industrial production grew at the slowest pace this year, suggesting weaker export growth and government curbs on lending are starting to cool the world's fastest-growing major economy.
Output rose 17.3 percent in November from a year earlier, the statistics bureau said yesterday, after gaining 17.9 percent in October.
Weaker global growth may further curb overseas shipments after the government this year reduced tax incentives for exporters. China has curbed bank lending to try to prevent the economy from overheating after inflation jumped to an 11-year high in November.
'Firms have scaled back production to avoid a quick build-up of inventories as they expect export growth to slow,' Sun Mingchun, an economist at Lehman Brothers Holdings Inc in Hong Kong, said.
'Monetary tightening has added credit constraints on company expansion.'
Output of steel products rose 12.7 percent in November from a year earlier after gaining 17 percent in October. Raw steel increased 4.3 percent, slowing from 13.5 percent.
Textile output rose 14.3 percent, down from 15.3 percent. Vehicle production grew 21.7 percent, slowing from 24.3 percent.
For the first 11 months, industrial production rose 18.5 percent from a year earlier, the National Bureau of Statistics said.
Export growth slowed to 22.6 percent for the past four months from the 29 percent pace through July because of cuts to export rebates, weaker US demand, and higher prices due to currency gains and production costs.
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