BEIJING (AP) — China's industrial output growth was slower than expected in October, although economists said the figures announced Thursday won't put off further moves to tighten the economy.
The country's value-added industrial production, which includes companies with annual core revenue of more than 5 million Chinese yuan (US$674,000; euro458,500), rose 17.9 percent from a year ago, according a report on the Web site of the National Bureau of Statistics.
That was slower than September's 18.9 percent gain from last year and below expectations for a 19.1 percent rise.
Despite the slowdown, China's policymakers are signaling they will take measures to tame resurgent inflation and mop up flush liquidity soon. China's Cabinet, the State Council, held a regular meeting late Wednesday presided over by China Premier Wen Jiabao. He warned that the government will guard against economic overheating and take further measures to ensure price stability.
In the past, China's central bank has raised interest rates or banks' reserve requirement ratio when a State Council meeting has been held amid the disclosure of stronger-than-expected data.
This week, data for October has shown that property prices in major Chinese cities accelerated for the sixth straight month, consumer inflation revisited 11-year highs, producer price increases gained speed and money supply expanded further.
Goldman Sachs has said it expects at least two more rate hikes of 27 basis points each in the near-term, as well as further increases to banks' required reserves and a faster yuan appreciation.
China's last rate hike, the fifth for this year, took effect in mid-September. The central bank said Saturday it was raising banks' required reserves for the ninth time this year, effective Nov. 26.
For the January to October period, China's industrial output rose 18.5 percent, unchanged from January-September.
Among industries, output in the textile sector rose 15.3 percent in October from a year ago, while production in non-metallic minerals was up 22.7 percent and ferrous metals were up 17.8 percent.
Output in transportation equipment manufacturing rose 24.8 percent in October. Output in telecommunications and other electronics equipment grew 18.9 percent.
Exports in October grew 22.3 percent from a year ago, slowing from September's gain of 22.8 percent.