Wednesday, November 9, 2011

China inflation, output create room for pro-growth steps

By Nick Edwards and Langi Chiang
BEIJING (Reuters) - Chinese industrial output grew at its weakest annual pace in a year in October and inflation fell sharply, raising expectations Beijing will do more to support economic growth by "fine tuning" policy.
A flurry of data on Wednesday showed that China's factories are bearing the brunt of a modest economic slowdown even as consumer spending and investment in assets such as roads and other infrastructure remain resilient.
China's annual inflation rate fell to 5.5 percent in October from September's 6.1 percent -- the biggest drop in the annual rate from one month to the next since February 2009 -- and a further pullback from July's three-year peak of 6.5 percent.

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