Chinese Industries Yet to Have ‘Solid’ Recovery, Ministry Says
China is yet to establish a solid foundation for a recovery in industrial production, the Ministry of Industry and Information Technology said.
The ministry cited faltering export demand, “serious” overcapacity in industries such as steel, and falling company profitability, in a report posted on its Web site today.
Output growth may accelerate to 8 percent this quarter as stimulus spending takes effect and exceed 10 percent for the second half, the ministry said. That compares with a 7.3 percent gain in April and 5.1 percent growth in the first quarter.
A quarter of industrial companies posted losses in the first quarter, and 21 of 39 industries tracked by the ministry said profits worsened for the three months through March 31 from the first two months of this year, the report said no fax payday advances.
The nation’s 72 big and medium-sized steelmakers posted 5.2 billion yuan ($760 million) in combined losses in the four months through April on falling prices and oversupply, the ministry said. About 40 percent of primary aluminum capacity remains idle, it said.