China Industrial Output Slowdown Will Deepen in Second Half, Ministry Says
China’s slowdown in industrial output growth will deepen after the smallest increase in 11 months in July, a government forecast showed today.
Production will gain about 10 percent in the second half of 2010 from a year earlier, the Ministry of Industry and Information Technology said at a briefing in Beijing today. That compares with July’s 13.4 percent and the 17.6 percent average for the first half of the year. August data is due next week.
“Economic growth will slow further,” said Xin Guobin, the head of the ministry’s operation monitoring and coordination bureau. He cited real-estate and energy curbs, an uncertain outlook for exports, and a higher base for comparisons as reasons for smaller output gains.
China’s economy, the world’s second biggest after overtaking Japan in the second quarter, is still growing steadily and isn’t at risk of a “second dip,” Xin told reporters. UBS AG forecasts the nation’s growth to keep slowing from a first-quarter peak, cooling to between 8 percent and 8.5 percent in the final three months of the year.
Industrial output may grow 13 percent for the full year, Xin said.
--Li Yanping. Editors: Paul Panckhurst, John Liu.
To contact Bloomberg News staff for this story: Li Yanping in Beijing at +86-10-6649-7568 or yli16@bloomberg.net
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