Growth may push economy's brake
The mainland's industrial output rebounded last month, growing 18.1 per cent year on year and strengthening the case for further macroeconomic tightening measures amid speculation that another interest rate increase is imminent.
Last month's growth rate exceeded the 17.4 per cent in April and surprised economists. Most had forecast a slowdown after an 18.5 per cent peak in January and February.
The output figures were released just a day after the State Council issued a report warning of the need for further tightening measures.
Industrial output rose 18.1 per cent year on year in the first five months of the year, up from 16.6 per cent growth for all of last year, the National Bureau of Statistics said on its website yesterday.
Booming exports were a key factor in the rapid growth of industrial output. Xinhua said the mainland exported 6.17 million tonnes of rolled steel last month, a decline of 13.8 per cent from the 7.16 million tonnes in April, but representing year-on-year growth of 76.8 per cent.
Net imports of crude oil jumped 11.5 per cent, to 65.83 million tonnes, in the first five months of this year, largely a result of accelerating industrial production.