Industrial production growth slows
14 September 2007
China's industrial production growth rate dropped in August, the Wall Street Journal reported. Value-added industrial production in August increased 17.5% from a year earlier, compared to July's increase of 18%. For the first eight months of the year, China's industrial output increased 18.4% year-on-year. Export growth demand dropped significantly in August, causing the drop in the industrial production growth rate last month. The People's Bank of China, is still expected to raise interest rates and reserve requirement ratios to reduce liquidity caused by the country's trade surplus. Actual foreign direct investment for the year ending August increased 12.8% from a year earlier to US$42 billion.