Industrial output grow 18.1%

Updated: 2007-06-14 15:05

The industrial production growth unexpectedly accelerated in May, increasing pressure on the central bank to raise interest rates to cool the fast-growing economy.

Output rose 18.1 percent in May from a year earlier, the National Bureau of Statistics said today, after gaining 17.4 percent in April.

Related readings:
 50% surveyed believe interest rate hike needed
 Growth of industrial output slows down
 Wen urges further cool-down measures

Output growth was the fastest since the 18.5 percent pace of January and February. 

"More than half of China's industrial production is for export," said Chris Leung, senior economist at DBS Bank Ltd. in Hong Kong. "But the big jump may also mean an acceleration in fixed-asset investment."

Factory and property investment probably grew 25.4 percent in the first five months from a year earlier, according to a Bloomberg News survey.

Vehicle production jumped 25.7 percent in May from a year earlier and cement output increased 20.7 percent.

Honda Motor Co, the only overseas automaker with a Chinese plant making vehicles exclusively for export, plans to boost its output at the factory 71 percent this year, the Tokyo-based company said this month.

(For more biz stories, please visit Industry Updates)