China"s Industrial Output Up 16.1 Percent In July From Year Earlier
China"s industrial output rose 16.1 percent from a year earlier in July, a slowdown suggesting curbs on real estate investment have helped brake the blistering economy, official data showed Monday.
The July figure for factory-gate goods, which amounted to 581.1 billion yuan (71.6 billion US), compared with a rise of 16.8 percent in June from a year earlier, the National Bureau of Statistics reported.
In the first seven months to July industrial output increased 16.3 percent to 3.81 trillion yuan, compared with a growth rate of 17.3 percent a year earlier and 16.4 percent in the first half.
"Slowing investment, particularly real estate related investments (is a major force)," said Dong Tao, an economist at Credit Suisse First Boston (CSFB).
China slapped curbs on the country"s booming real estate market last April amid growing concern that various markets were expanding too quickly and risked a serious financial crisis if prices collapse.
Measures vary from city to city and include a capital gains tax depending on the length of a buyer"s holding period, the banning of pre-completion sales and a tightening of land-use rights.
Tao added that the country"s persistent power shortages, a problem that has plagued China for the past three years, were also impacting the output of factory goods.
"These two forces are having an effect and we believe China is overall on track for a soft landing," said Dong.
Beijing has tried to engineer a partial slowdown of the economy, which last quarter expanded at 9.4 percent, but high oil prices are also to blame for trimming corporate profits and therefore production.
One sector which saw a marked cooling in July was China"s cement output, an industry closely linked to property construction that rose 7.4 percent, down from more than 17 percent earlier last year.
However, China"s industrial exports still saw robust growth overall, up 391.3 billion yuan, a gain of 26.1 percent, the bureau said.
Among others sectors, vehicle production soared 27.8 percent, of which sedans made up 55.4 percent growth, suggesting that demand in the competitive and struggling industry was rebuilding.
China"s steel industry, the world"s largest which is undergoing a major restructuring in hopes of making it more competitive, continued to see strong growth despite slowing demand.
Pig iron production jumped 30.7 percent while crude steel rose 28.6 percent and steel products manufacturing was up 28 percent.
Another sector under pressure by China"s economic pace was coal, a commodity which despite its abundance often does not arrive to electricity producers on time. The production of coal rose 10.8 percent in July.
Chemicals, non-metal sectors and heavy industries gained between 18.7 and 21.3 percent on an annual basis, the NBS said.
Meanwhile, the production of foods, medical goods, and clothing and accessories and other light industries rose between 18 and 28.5 percent, it said.
All rights reserved. © 2005 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.
The July figure for factory-gate goods, which amounted to 581.1 billion yuan (71.6 billion US), compared with a rise of 16.8 percent in June from a year earlier, the National Bureau of Statistics reported.
In the first seven months to July industrial output increased 16.3 percent to 3.81 trillion yuan, compared with a growth rate of 17.3 percent a year earlier and 16.4 percent in the first half.
"Slowing investment, particularly real estate related investments (is a major force)," said Dong Tao, an economist at Credit Suisse First Boston (CSFB).
China slapped curbs on the country"s booming real estate market last April amid growing concern that various markets were expanding too quickly and risked a serious financial crisis if prices collapse.
Measures vary from city to city and include a capital gains tax depending on the length of a buyer"s holding period, the banning of pre-completion sales and a tightening of land-use rights.
Tao added that the country"s persistent power shortages, a problem that has plagued China for the past three years, were also impacting the output of factory goods.
"These two forces are having an effect and we believe China is overall on track for a soft landing," said Dong.
Beijing has tried to engineer a partial slowdown of the economy, which last quarter expanded at 9.4 percent, but high oil prices are also to blame for trimming corporate profits and therefore production.
One sector which saw a marked cooling in July was China"s cement output, an industry closely linked to property construction that rose 7.4 percent, down from more than 17 percent earlier last year.
However, China"s industrial exports still saw robust growth overall, up 391.3 billion yuan, a gain of 26.1 percent, the bureau said.
Among others sectors, vehicle production soared 27.8 percent, of which sedans made up 55.4 percent growth, suggesting that demand in the competitive and struggling industry was rebuilding.
China"s steel industry, the world"s largest which is undergoing a major restructuring in hopes of making it more competitive, continued to see strong growth despite slowing demand.
Pig iron production jumped 30.7 percent while crude steel rose 28.6 percent and steel products manufacturing was up 28 percent.
Another sector under pressure by China"s economic pace was coal, a commodity which despite its abundance often does not arrive to electricity producers on time. The production of coal rose 10.8 percent in July.
Chemicals, non-metal sectors and heavy industries gained between 18.7 and 21.3 percent on an annual basis, the NBS said.
Meanwhile, the production of foods, medical goods, and clothing and accessories and other light industries rose between 18 and 28.5 percent, it said.
All rights reserved. © 2005 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.