Industrial output powering ahead

THE China State Economic and Trade Commission expects the country's industrial value-added output will increase 12 per cent this month, compared with the year-on-year total of 154 billion yuan (about HK$143.22 billion).

The commission expects national total industrial output will record a 14.3 per cent year-on-year growth this month.

A commission economic expert said industrial production was back to normal this month, having recovered from the effects of floods, droughts and unusual high temperatures earlier this year, Xinhua (the New China News Agency) reported yesterday.

The agency said there could be a relaxation of China's credit squeeze in the fourth quarter to allow key industrial plants to gain the capital they needed to maintain production.

Manufacturers of farming machinery and other farm industry needs would also be given support in time for the autumn sowing season.

Light industry was still under pressure from interest burdens, triangular debt, and increasing production costs and inventories, lowering the output estimates.

Industrial value-added output was expected to reach 1.29 trillion yuan in the first nine months of this year, about 14 per cent more than the same period last year.

The proportion of sales to industrial output improved last month to 96.1 per cent, according to the commission's figures.

The report said the sales proportion increased 1.3 per cent, compared with July, reflecting efforts to control factory production and to reduce inventories.

Compared with last year, last month's light industrial output increased 14.4 per cent to reach 154.4 billion yuan.