Downturn hits industry index growth rate
Downturn hits industry index growth rate
The industrial production index (IIP) growth rate and inventory index both declined in the first six months of 2013 compared to the same period last year, largely due to the ongoing economic difficulties.
According to the General Statistics Office, the IPP increased 5.2 per cent in the first half compared to 6.1 per cent last year, while the inventory index fell 9.7 per cent.
The GSO attributed the lower inventory index to the new tendency of businesses to sell products for cheaper than their production costs in an attempt to clear stock and retrieve their investment.
However, the GSO said the manufacturing sector's inventory percentage was still high, at 75 per cent in the first half of this year, well above the commonly regarded "secure level" of 65 per cent.
Manufacturing and processing, which accounted for over 70 per cent of all industrial production, expanded 5.5 per cent in the first six months. But this was still a slip from the 6.3 per cent growth in the first half of 2012.
Some products saw significant growth, such as cast metals (up 14.6 per cent), leather (up 16.5 per cent), paper and paper products (up 14.7 per cent) and beverages (up 10.5 per cent).
But several major products stayed flat and some even declined such as electricity production, which generated 59.8 billion Kwh in the first six months, up just 8.7 per cent compared to the 14.7 per cent growth over the same period last year.
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