US economic woes, yuan strength and further tightening steps to extend slowdown
Mainland industrial output in the first two months of this year grew at the slowest pace since December 2006 as the worst snowstorms in 50 years disrupted production in central, southern and eastern provinces.
The 15.4 per cent year-on-year growth rate was below the 17.4 per cent increase posted in December and the 18.5 per cent rise for the full year, the National Bureau of Statistics said. Industrial production last year grew at the fastest pace since 1993.
Blizzards hit 21 out of 31 provinces in January and last month, blocking transport, cutting power supplies, shutting smelters and factories and killing at least 129 people.
Economists say the slowdown is expected to continue as the United States economic malaise hits exports, the yuan appreciates and as Beijing's credit curbs begin to bite.
Because the data has been distorted by the snowstorms, they say it is too early to hail the success of tighter monetary policies, which were introduced at the end of last year to prevent economic overheating and curb inflation. Many economists expect the mainland to raise interest rates at least once this year.
The statistics bureau provided the two-month figure to even out the effects of the Lunar New Year, which falls at different times each year. Many factories close during the long holiday.