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Growth
in China's industrial production, a measure of output at factories, workshops
and mines, fell to a six-month low in October, official data showed Wednesday
(Nov 11), suggesting sustained weakness in the world's second-largest economy.
Industrial
output increased 5.6 per cent last month from a year ago, the National Bureau
of Statistics (NBS) said, the lowest reading since March's identical figure and
edging down from a 5.7 per cent rise in September.
It
was also below the median forecast of a 5.8 per cent increase in a survey of
economists by Bloomberg News. The figures come as the world worries about
growth in China, a leading engine of global expansion.
Authorities
are trying to transform the country's growth model to a slower but more
sustainable one driven by consumption rather than infrastructure investment,
but the transition to the "new normal" is proving bumpy.
"The
marginal fall in October's industrial production growth showed support from the
rapid development of new industries was still insufficient while traditional
industries were having deep corrections," the NBS said in a statement.
"The
industrial economy is still facing downward pressures looking forward," it
said.
Overcapacity
in manufacturing, a slowdown in the country's property market and mounting
local government debt are among the factors that have weighed on growth. Gross
domestic product (GDP) expanded 7.3 per cent last year, the slowest pace since
1990, and at 7.0 per cent in each of the first two quarters of this year.
It
decelerated further to 6.9 per cent in the July-September period, its slowest
rate in six years. After the bleak third-quarter economic data, China cut
interest rates for the sixth time since November last year and trimmed the
reserve requirement ratio - the amount of cash banks must keep in reserve - to
boost lending.
Last
week saw the clearest signal yet Beijing would lower its growth targets, with
President Xi Jinping saying annual expansion of only 6.5 per cent for the
2016-2020 period would be enough to meet its goals.
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