China Industrial Output Jumps Over 10% In June

BEIJING (Nikkei)--China's industrial production climbed 10.7% year on year in June, marking the first double-digit growth in nine months, according to data released Thursday by the National Bureau of Statistics.

The robust production figure reflects the fact that inventory adjustments have run their course and demand is getting a boost from the 4 trillion yuan (55 trillion yen) stimulus package.

The recovery in industrial output is the main reason China's economy expanded 7.9% in the April-June quarter, considerably more than the 6.1% growth logged for the previous three months.

Industrial output growth in China remained at around 15% until the first half of last year. But the economic downturns in the U.S. and Europe hit exports hard, causing production to tumble. In January and February, industrial output rose by just 3.8%, the smallest increase since the data was first published in 1999.

(The Nikkei July 16 evening edition)