Industrial output growth slows down
16 August 2006
Industrial production slowed a little last month, a sign that the economy may be cooling. Growth in industrial production output slowed to 16.7% in July from a year earlier, down from 19.5% in June, the Wall Street Journal reported. World Bank economists said moves by Beijing to slow the economy - an interest rate hike, two increases in bank reserve requirements and new property taxes - may be having an impact. Some fear that if the economy grows too much too fast it could create a glut of goods, seriously harming profits. The figures released Tuesday by the World Bank show the economy should still expand by 10.4% this year, sharply higher than the 9.5% initial forecast but slower than the 11.3% second quarter growth - the highest in 12 years.
