China's industrial production grew 18 percent in July, slowing for the first time in three months after cuts to export incentives.
Output expanded less than June's 19.4 percent, the statistics bureau said today. China reduced export tax rebates on 2,831 types of products starting July 1.
The slowdown isn't likely to ease government concern that the world's fastest-growing major economy may be overheating. Inflation jumped in July to the highest rate in more than a decade and economists say a report tomorrow will show investment in factories and property is accelerating.
Here's the release from China Statistics:
In July, the value-added of the industrial enterprises that above designated size (all state-owned enterprises and non-state-owned enterprises with an annual sales income over 5 million yuan) increased 18.0 percent year-on-year. The sales ratio of industrial products was 98.42 percent, dropped 0.03 percentage point over the same month of last year. Industrial enterprises achieved a total export delivery value of 608.5 billion yuan, a year-on-year rise of 22.2 percent.
In terms of main sectors, the growth rate of manufacture of textile, raw chemical materials and chemical products, non-metallic mineral products, smelting and pressing of ferrous metals expanded respectively 15.8, 20.2, 22.7 and 18.8 percent; that of manufacture of general purpose machinery, transportation equipment manufacturing industry, electromechanical equipment manufacturing climbed 23.5, 26.6 and 23.2 percent correspondingly; that of manufacture of communication equipment, computers and other electric equipment increased 19.7 percent; and that of production and supply of electric power and heat power rose by 13.1 percent.
In terms of major industrial products, the output of coal and electricity respectively reached 196 million tons and 291.6 billion kilowatt-hours, increased 12.7 and 15.5 percent respectively. The output of crude oil was 15.47 million tons, dropped 1.7 percent year-on-year. The output of pig iron, crude steel and rolled steel stood at 39.67, 41.25 and 47.73 million tons, rose by 13.2, 14.5 and 23.9 percent respectively; that of cement was 117 million tons, up by 11.6 percent; that of automobiles was 679 thousand sets, up by 32.7 percent, of which, 386 thousand sets of cars with a growth of 27.9 percent over the same month of the previous year.
From January to July, the accumulated value-added of industrial enterprises above designated size achieved a year-on-year rise of 18.5 percent.