China’s Industrial Production Rises To 9.6% In October

  on
Yuan banknotes are seen in this illustrative photograph taken in Beijing
Yuan banknotes are seen in this illustrative photograph taken in Beijing September 19, 2010.

China’s industrial production rose in October compared to that in the previous month, indicating an upswing in the manufacturing output.

The data released Friday by the National Bureau of Statistics of China showed that the country’s industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities, rose to 9.6 percent in October, up from 9.2 percent in September and also more than the analysts’ expectation of 9.4 percent.

This report comes after it was reported Friday that the rate of inflation in China slowed down in October compared to that in the same month in the last year, showing signs of a gradual decline in price pressure to provide scope for monetary easing. The data from the National Bureau of Statistics show that China’s consumer price index, which measures the change in the price of goods and services from the perspective of the consumer, rose 1.7 percent in October from a year earlier, down from 1.9 percent in September.

The data released Friday by the National Bureau of Statistics of China showed that the country’s retail sales, which measure the change in the total value of inflation-adjusted sales at the retail level, rose to 14.5 percent in October, up from 14.2 percent in September and also more than the analysts’ expectation of 14 percent.

In another indication that the world’s second largest economy is reviving the economic growth momentum, China’ fixed asset investment posted a better-than-expected rise in October. The data released Friday by the National Bureau of Statistics of China showed that the country’s fixed asset investment, which measures the change in the total spending on non-rural capital investments such as factories, roads, power grids, and property, rose to 20.7percent in October, up from 20.5 percent in September and also more than the analysts’ expectation of 20.6 percent.

Last month, it was reported that China's manufacturing activity expanded in October after two months of contraction, giving the indication that the country’s economy is on the path of recovery. The data released by the China Federation of Logistics & Purchasing showed that the Purchasing Managers' Index rose to 50.2 in October from 49.8 in September. Significantly, the index moved into the expansion zone, a reading above 50.

Meanwhile, the market participants are hoping that the policymakers will soon announce monetary easing measures so that the economy will continue to see that industrial activities are picking up.

Join the Discussion