China: Industrial production decelerates further in October
November 11, 2010
In October, industrial production expanded 13.1% over the same month last year. The reading came in below the previous month's 13.3% expansion as well as market expectations, which had seen industrial production strengthening to a 13.4% expansion. October's deceleration was broad-based, as growth in both light and heavy industries slowed compared to the previous month. One of the primary drivers behind the monthly slowdown was the manufacture of textiles, which decelerated from a 11.5% annual expansion in September to a 10.5% increase in October. In addition, general purpose machinery manufacturing also decelerated, expanding 18.8% over October 2009 (September: +20.2% year-on-year). As a result of the moderate October reading, annual average growth in industrial production weakened from 16.8% in September to 16.6%, further approaching the Consensus Forecast of a 14.7% growth this year. For 2011, the panel expects industrial production growth to moderate to 12.9%.