Chinese production up, but exports fall

China’s economy continued to grow rapidly throughout August, according to several major economic indicators released by the National Bureau of Statistics of China today.

Industrial production in August increased by 12.3% year-on-year compared with a 10.8% increase recorded in July.

This was led by a 26.7% increase in the manufacture of transport equipment, 90% up year-on-year, as car makers continue to benefit from cash-for-clunkers schemes.

Investment spending in fixed assets increased by 33.0% in the first eight months of the year to reach Rmb 11,298.5 billion (£1,002.7 billion), 5.6% higher than the first eight months of 2008.

Retail sales of consumer goods increased by 15.4% year-on-year, reaching Rmb 1,011.6 billion. The two biggest increases were in sales of cars, which increased by 34.8% and sales of clothes, which grew by 23.3%.

The consumer price index fell by 1.2% over the year, following a fall of 1.8% in July. Food prices increased by 0.5% whilst non-food prices fell by 2.0%.

Producer prices fell by 7.9% over the year, 0.3% less than in July, and 6.8% over the first eight months of 2009.

However, China’s exports fell by 23% over the year, a greater decline than forecast.

Exports were $103.7 billion (£62.8 billion) in August compared with $134.9 billion a year earlier. Imports fell 17% year-on-year to $88.0 billion.

The trade surplus for August, which fell 45% year-on-year, was $15.7 billion compared with $10.6 billion in July.

Related Articles:
Industry and retail support Chinese growth
Chinese economy records 7.9% growth