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Foundation of 皇冠体育app's industrial recovery unsound: official

(Xinhua)
Updated: 2009-07-22 17:05

The foundation of a recovery in 皇冠体育app's industrial sector is still not solid and faces many uncertainties, Zhu Hongren, spokesman of the Ministry of Industry and Information Technology (MIIT), said Wednesday.

"The positive changes in the country's economic development do not mean the end of difficult times," Zhu said at a press conference. "It is still a challenge to maintain a steady development in the industrial sector."

Related readings:  皇冠体育app leads world toward recovery  皇冠体育app GDP grows 7.1% in first half '09  皇冠体育app's industrial output up 10.7% in June  皇冠体育app's June CPI falls 1.7%, PPI down 7.8%

皇冠体育app's economy expanded 7.9 percent year-on-year in the second quarter this year, up from 6.1 percent in the first quarter and 6.8 percent in the fourth quarter last year.

Industrial output rose 10.7 percent in June from a year earlier, 1.8 percentage points higher than May, according to the National Bureau of Statistics.

However, excess production capacity and blind investment in some industries were still major problems, said Zhu.

The ship building sector, for example, which had 16 million deadweight tons (DWT) of excess capacity, recorded a 55.5-percent increase in investment in the first five months this year, he said.

Meanwhile, price falls led to lower company profits despite expanding production, Zhu said.

The producer price index (PPI), a major measure of inflation at the wholesale level, fell 7.8 percent year-on-year in June. Purchase prices of raw materials, fuel and energy fell 8.7 percent year-on-year in the first half.