Economy Boomed in October      

The National Bureau of Statistics of China (NBS) reported on November 11th that in October, the total industrial added value of the industrial enterprises above designated size increased 16.1% year-on-year, compared with the 8.2% growth in October 2008 and the 13.9% growth in September 2009. It was 0.9% higher than this September.
   In the first ten months, the accumulated industrial added value grew 9.4% over one year earlier, compared with the 14.4% growth in the same period of 2008 and the 8.7% growth in the first nine months in 2009.
   In October all the 39 industrial divisions enjoyed year-on-year growth. Of total, the growth of textile industry was 11.1% and the chemical raw materials and products manufacture sector being 25.4%.  
   Among 494 products tracked by NBS, the output of 396 products in October showed a year-on-year growth. Of that, the output of coal was 270 million tons, up 21.1% year over year, crude oil output declined by 1.8% to 16.25 million tons, electricity generated increased by 17.1% to 312.1 billion kWh, cement output surged 23.9% to 160 million tons, automobile output was 1.31 million units with a year-on-year growth of 78.6%.
   In the first ten months, the urban investment in fixed assets reached RMB15 071.0 billion, up by 33.1% year-on-year, compared with the 27.2% growth in the same period of 2008 and the 33.3% growth in the first nine months of this year. The investment in primary industry, secondary industry and the tertiary industry went up by 54.1%, 26.8% and 37.8% respectively.
   In October, the total retail sales of consumer goods reached RMB1 171.8 billion, a year-on-year rise of 16.2%, which was 5.8 percentage points lower than that in October 2008, and 0.7 percentage points higher than that in September of this year.
   In October, the consumer price index (CPI) fell 0.5% year-on-year, compared with the 0.8% drop in the previous month. In the first ten months, CPI was down by 1.1% maintaining the same level as that in the first nine months of this year. In October, the producers' prices index (PPI) for manufactured goods went down by 5.8% year-on-year, the decrement rate was 1.2 percentage points less that in the previous month. In the first ten months, PPI posted an accumulated drop of 6.4%. In October, the purchaser's prices for raw materials, fuel and power decreased by 8.4% year-on-year, the decrement was 1.7 percentage points less from the previous month.
   Zhang Weihua, an officer of NBS, commented his viewpoints on the super high growth (16.1%) of industrial added value in October. He did not think the figure has problem and reviewed that the figure can compete with the growth in the first half of 2008. It can only illustrate that the recovery for industrial enterprises is confirmed with the recovery base being enforced. The electricity generated, the turnover of goods and the output of major products all identified such a high growth was true. Profit the industrial enterprises earned in September also witnessed a year-on-year growth of 24.8%, compared with 18.1% in the previous month.  
   Zhang also warned that the 16.1% growth did not state that the worst period has gone over. Economy started to decline in October 2008, which gave a lower base to count on the year-on-year growth for this year. The month on month growth stated that the growth in October was in the normal range.