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China Machinery Industry Growth Slows Sharply in First Half of 2012

by wireworld on 07/24/2012 - 03:12 pm

Tags: Market Stats, Press Releases

China's machinery industry grew 9 percent in the first half of 2012 from a year earlier, slowing sharply from the 16.2 percent annual pace in 2011 as orders slackened, data from China's Machinery Industry Federation reported.


 


 


Machinery industry accounts for nearly a fifth of China's overall industrial output, which rose 9.5 percent in June from a year ago and grew 10.5 percent in the first half of this year.


 


 


"China's machinery industry faces the most severe situation this year following the global financial crisis in 2008," said Cai Weici, vice president of the Federation.   Orders of major machinery companies slipped 0.95 percent in the first half of 2012 from the same year-ago period, a significant slowdown from average growth of more than 20 percent in recent years, Cai added.


 


 


The federation's data showed about 16.4 percent of  machinery firms were in the red in the first five months of 2012, up 3.8 percent points from the same year-ago period.  The federation still expects machinery firms' combined profits to rise around 5 percent this year from 2011.


 


 


China's annual economic growth cooled to 7.6 percent in April-June period, the weakest pace in more than three years, confirming a downward trend that leaves full-year growth on course for its softest showing since 1999.