China industrial output up 16 percent

Industrial output increased by 16 percent in May from a year earlier, after gaining 15.7 percent in April as China’s industrial-production growth increased, following an upturn in exports, which is another indication that the world’s fourth largest economy is surviving the global slowdown.

So far in 2008, China’s trade surplus has declined by 8.6 percent from 2007, although the increase in the yuan and the US economic slowdown was predicted to have a much bigger impact that it did.

Analysts did indicate the yuan will continue to appreciate at its current rate and that imports will, in turn, be made cheaper which will alleviate the burden of inflation.

More of a direct threat is the rising labour costs in the country, coupled with the export slowdown and reduced demand, which has caused the Yuan to rise in such a manner.

In the meantime China’s crude oil output in May this year reached 16.2 million tonnes, which is a 1.8 percent increase from 2007. The country is under pressure to increase production in a period when fuel prices are a primary cause of inflationary pressure.

Chinese factories experienced a 7.5 percent increase in the production of cement last month, to 130 million tonnes, whilst vehicle output reached 895,000 units which is a rise of 21.7 percent from 2007.

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