Industrial production gains decrease
By Winny Wang |
August 12, 2010, Thursday
|
Print Edition
Print Edition
CHINA'S industrial production growth slowed for the fourth straight month in July, signaling that policies to reduce lending and cool the economy have weighed on demand for industrial goods.
Meanwhile, urban fixed-asset investments gained 24.9 percent in the first seven months of this year, slower than the 25.5 percent growth in the first six months, as the exit of monetary stimulus suppresses business investment.
Industrial output gained 13.4 percent last month from a year earlier, compared with a 13.7 percent increase in June, the National Bureau of Statistics said yesterday.
The growth was in line with consensus market estimates.
Heavy-industry output grew 13.3 percent last month, compared with a 14.5 percent hike in June, while light industry expanded 13.5 percent, 1.5 percentage points faster than that in June, the bureau said.
"Authorities' efforts in engineering slower growth are clearly working, with reduced bank lending cooling investment and industrial production. The forced closure of energy-inefficient factories will have taken some of the sting out of electricity and oil output," said Matthew Circosta, an analyst at Moody's Economy.com.
Crude oil output grew 6.4 percent to 17.22 million tons last month, slower than a 7.4 percent increase in June. Auto production rose 17.1 percent to 1.3 million units, compared with June's 18.4 percent growth.
"Domestic consumption will play an increasingly important role in supporting industrial production in China. For this reason, authorities would likely pull back on tightening measures to ensure both consumption and production do not fall in a hole. As such, we can expect softer but more sustainable growth in the coming months," Circosta said.
In the first seven months, industrial output grew 17 percent from a year earlier, 0.6 percentage point slower than that in the first half of this year, according to the bureau.
Urban fixed-asset investment in the first seven months was up 24.9 percent from a year earlier to 11.99 trillion yuan (US$1.77 trillion).
Real estate investment grew 37.2 percent to 2.39 trillion yuan, slower than the 38.1 percent growth in the first half.
"As authorities pull back the monetary stimulus, slow money supply and weaker credit growth dampen fixed-asset investment. As such firms will be less willing to undertake expansion plans if demand for manufactured goods and property continues to weaken," Circosta said.
Meanwhile, urban fixed-asset investments gained 24.9 percent in the first seven months of this year, slower than the 25.5 percent growth in the first six months, as the exit of monetary stimulus suppresses business investment.
Industrial output gained 13.4 percent last month from a year earlier, compared with a 13.7 percent increase in June, the National Bureau of Statistics said yesterday.
The growth was in line with consensus market estimates.
Heavy-industry output grew 13.3 percent last month, compared with a 14.5 percent hike in June, while light industry expanded 13.5 percent, 1.5 percentage points faster than that in June, the bureau said.
"Authorities' efforts in engineering slower growth are clearly working, with reduced bank lending cooling investment and industrial production. The forced closure of energy-inefficient factories will have taken some of the sting out of electricity and oil output," said Matthew Circosta, an analyst at Moody's Economy.com.
Crude oil output grew 6.4 percent to 17.22 million tons last month, slower than a 7.4 percent increase in June. Auto production rose 17.1 percent to 1.3 million units, compared with June's 18.4 percent growth.
"Domestic consumption will play an increasingly important role in supporting industrial production in China. For this reason, authorities would likely pull back on tightening measures to ensure both consumption and production do not fall in a hole. As such, we can expect softer but more sustainable growth in the coming months," Circosta said.
In the first seven months, industrial output grew 17 percent from a year earlier, 0.6 percentage point slower than that in the first half of this year, according to the bureau.
Urban fixed-asset investment in the first seven months was up 24.9 percent from a year earlier to 11.99 trillion yuan (US$1.77 trillion).
Real estate investment grew 37.2 percent to 2.39 trillion yuan, slower than the 38.1 percent growth in the first half.
"As authorities pull back the monetary stimulus, slow money supply and weaker credit growth dampen fixed-asset investment. As such firms will be less willing to undertake expansion plans if demand for manufactured goods and property continues to weaken," Circosta said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
