The mainland's industrial output rose slightly last month, but economists predicted a downward trend in the coming months.
Industrial output, a benchmark indicator of factory activity, rose 9.3 per cent year on year to 162.1 billion yuan (about HK$151.19 billion) last month, up from 9.1 per cent in June, the official Xinhua news agency said, citing figures from the State Statistical Bureau.
'July's growth in industrial output appears to be flat as the government's investment programme has lost steam,' Chu Siu-wah, senior economist at GK Goh Securities, said yesterday.
In the first seven months, the value-added output was up 9.4 per cent year on year to 1.10 trillion yuan.
That remains flat over the 9.4 per cent year-on-year increase in the first half of this year, and lower than the 10.1 per cent in the first quarter.
'I would say industrial output is likely to continue its downward trend throughout the year, ' Mr Chu said.
Economists said the lacklustre industrial output is likely to strengthen Beijing's determination to use public spending again to boost the faltering economy.