Industrial output, investment up, showing stronger revival
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China's industrial output, investment and retail sales registered robust growth in October, while the export slump pace slowed, as the economy saw a more consolidated recovery of growth.
China's industrial output rose 16.1 percent in October from a year earlier, the sixth consecutive month with an acceleration of year-on-year growth.
Industrial output of the world's third largest economy increased 9.4 percent year on year over the first 10 months this year, according to figures released by the National Bureau of Statistics (NBS) Wednesday.
The data showed China's industrial sector had picked up momentum and the government's stimulus measures had taken effect, said Lian Ping, chief economist of the Bank of Communications, China's fifth largest lender.
The government presented a 4-trillion yuan (586 billion U.S. dollars) stimulus package a year ago and unveiled industry stimulus and restructuring plans earlier this year for 10 sectors, including textiles, petrochemicals, iron and steel, in a bid to bolster economic growth.
China's urban fixed-asset investment rose 33.1 percent year on year in the first 10 months to 15.07 trillion yuan, boosted by a roster of government-backed investment projects.
"The urban fixed-asset investment will continue to serve as a major driver to push the country's economy up," said Hao Daming, an analyst with China Galaxy Securities, predicting the economy would expand by more than 10 percent in the fourth quarter.
The October industrial output increase rate was 7.9 percentage points higher from a year earlier and 2.2 percentage points higher than September, said the NBS.
Although the industrial output growth rate was 5 percentage points lower than that of a year earlier, it was still 0.7 percentage points higher than that of the first nine months.
"The month-on-month industrial output increase trend provides fresh evidence of economic recovery signs," Lian said.
All 39 industrial sectors saw a year-on-year growth. The industrial output of the textile industry rose 11.1 percent year on year, and the manufacturing of transport equipment sector surged 28.9 percent, said Sheng Laiyun, a spokesman of the NBS.
The combined electricity generation volume nationwide, a real-time snapshot of the country's economic activity, rose 17.1 percent year on year in October to 312.1 billion kilowatt-hours, showing a quicker pace of economic revival.
China's retail sales in October rose 16.2 percent year on year to 1.17 trillion yuan, with the automobile sales value up 43.6 percent year on year last month. The rise was 0.7 percentage points higher than that in September, said Sheng.
Official figures revealed that China's auto sales posted a strong growth of 72 percent year on year to 1.22 million units in October, becoming the world's largest auto market, on the back of strong domestic demand boosted by government's tax cut and stimulus measures.
The slump in exports eased in October, dropping 13.8 percent year on year to 110.8 billion U.S. dollars, the smallest decrease in 10 months, figures from the General Administration of Customs showed Wednesday.
It was not difficult for China's gross domestic product (GDP) to expand by 8 percent this year, but economic restructuring was a tough task for China, Ou Minggang, director of the finance department of the Beijing-based China Foreign Affairs University, told Xinhua Wednesday.
Investment contributed 6.2 percentage points to China's 7.1 percent year-on-year GDP growth in the first half, and consumption3.8 percentage points. Exports dragged down growth by 2.9 percentage points.
"China's current economic growth relies too much on investment. The financial crisis and global economic slowdown have added new pressure to China's economic restructuring, as maintaining a relatively fast economic growth is one of the top priorities of the government," Ou said.
Chinese lenders curtailed new loans sharply last month to 253 billion yuan from 516.7 billion yuan in September, the smallest monthly new loan growth this year, according to figures revealed Wednesday by the People's Bank of China, the central bank.
"This showed Chinese banks and industry watchdog's efforts to curb the rise in new loans and risk control," Ou added.
New loans from Chinese financial institutions topped 7.37 trillion yuan in the first half against the backdrop of the stimulus package and massive government spending.
