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China's Industrial Output Picks Up Pace

Sun Nov 9, 8:37 PM

By ELAINE KURTENBACH, AP Business Writer

SHANGHAI, China - Strong domestic and overseas demand energized China's industrial output in October, a strong indication that the economy has shrugged off the impact of SARS, the National Bureau of Statistics reported Monday.

The quickened pace of output comes as officials and economists voice worries that the economy might be growing too fast, raising concerns over politically risky price inflation.

Value-added industrial output, the key measure of manufacturing production, jumped 17.2 percent over a year earlier in October to $45.4 billion, the bureau said in a report posted on its Web site.

That was faster than the 16.3 percent year-on-year growth registered in September but below the 19.8 percent figure for February _ the highest so far this year. Analysts had predicted a 16.5 percent rise in October.

The outbreak of SARS, or severe acute respiratory syndrome, hit tourism and related sectors hard last spring, but the impact on the economy appears to have been limited and transient. Output has steadily recovered since the epidemic subsided in June.

The fastest growth was in high-tech sectors such as electronics and telecommunications equipment, and export-oriented production. Output of mobile phones, for example, jumped 37.4 percent over a year earlier, the bureau reported.

Production for export climbed 29.4 percent over a year earlier to $30.2 billion. The figure was also a 3.3 percent jump over a month earlier.

China's central bank has recently taken steps to curb credit expansion amid worries the economy may be overheating. Economic growth expanded 9.1 percent during the third quarter of this year, and the consumer price index rose 1.1 percent in September.