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Shanghai posts dismal data
By Wang Yanlin |
November 16, 2011, Wednesday
|
Print Edition
Print Edition
THE tighter government measures have caused Shanghai's industrial production to weaken sharply in October while investments fell.
The outlook for manufacturing is even gloomier when the city's Purchasing Managers' Index, a harbinger of future industrial performance, fell 0.7 point from a month earlier to 47.7 in October, the lowest since July 2009. A reading below 50 means contracting manufacturing activities, and October was third straight month for Shanghai's PMI to fall below 50.
Industrial output in Shanghai edged up 0.9 percent from a year earlier to 261.1 billion yuan (US$41.3 billion) last month, a sharp drop from the 4.7 percent in September and 7 percent in August, the Shanghai Statistics Bureau said yesterday.
Fixed-asset investment fell 1.9 percent annually to 374.8 billion yuan in the first 10 months, led by less injection of capital in the city's infrastructure projects.
Wang Zehua, an analyst at the bureau, attributed the moderation to the tight policies, a cooling economy and the city's efforts to upgrade its economic structure.
"Small firms, which account for more than two-thirds of Shanghai's economic output, are under great pressure to survive in the current credit conditions," Wang said.
The six key industries in Shanghai - information technology, vehicles, refined oil, fine steel, machinery equipment and biomedicine - reported their output gained 2 percent to 175.6 billion yuan in October, better than the city's average pace. But the sharp moderation in manufacturing growth and falling investment may trigger a disastrous economic slowdown, some analysts said.
"China has signaled it may fine-tune the current tightening policies to sustain growth,'' said Li Maoyu, an analyst at Changjiang Securities Co. "Producers, especially cash-strapped small firms, may soon see credit loosening."
Some analysts said China may now adopt a selective easing stance.
The outlook for manufacturing is even gloomier when the city's Purchasing Managers' Index, a harbinger of future industrial performance, fell 0.7 point from a month earlier to 47.7 in October, the lowest since July 2009. A reading below 50 means contracting manufacturing activities, and October was third straight month for Shanghai's PMI to fall below 50.
Industrial output in Shanghai edged up 0.9 percent from a year earlier to 261.1 billion yuan (US$41.3 billion) last month, a sharp drop from the 4.7 percent in September and 7 percent in August, the Shanghai Statistics Bureau said yesterday.
Fixed-asset investment fell 1.9 percent annually to 374.8 billion yuan in the first 10 months, led by less injection of capital in the city's infrastructure projects.
Wang Zehua, an analyst at the bureau, attributed the moderation to the tight policies, a cooling economy and the city's efforts to upgrade its economic structure.
"Small firms, which account for more than two-thirds of Shanghai's economic output, are under great pressure to survive in the current credit conditions," Wang said.
The six key industries in Shanghai - information technology, vehicles, refined oil, fine steel, machinery equipment and biomedicine - reported their output gained 2 percent to 175.6 billion yuan in October, better than the city's average pace. But the sharp moderation in manufacturing growth and falling investment may trigger a disastrous economic slowdown, some analysts said.
"China has signaled it may fine-tune the current tightening policies to sustain growth,'' said Li Maoyu, an analyst at Changjiang Securities Co. "Producers, especially cash-strapped small firms, may soon see credit loosening."
Some analysts said China may now adopt a selective easing stance.
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