Industrial prosperity index stable in Q3 (2)

Export growth speed dropped

The export delivery value of industrial enterprises in the third quarter increased by 3.5 percent year-on-year, 3.4 percentage points lower than that in the last quarter.

The drop of export growth speed of industrial enterprises was related with the global economic downturn. The global economic situation in the third quarter failed to keep the favorable state in the second quarter and turned to keep dropping. In particular, the Chinese export to the EU dropped significantly. The Chinese accumulative export to the US and Japan increased by 9.6 and 4.5 percent respectively from January to September year-on-year, 4 and 3.6 percentage points lower respectively than that from January to June; the accumulative export to the EU decreased by 5.6 percent, with the drop range increasing by 4.8 percentage points compared with that from January to June.

Price of industrial product kept dropping

Starting from May, the factory price of industrial producers kept dropping month-on-month with the drop range keeping increasing. The accumulative drop range of the factory price of industrial producers was 1.5 percent from January to September and it dropped by 3.6 percent in September. The price drop of industrial products was mainly due to the price drop of industrial production material (dropping by 2.3 percent accumulatively from January to September).

The price drop of energy and raw material in the upstream of the industrial chain was higher than that of the industrial products in the downstream. In particular, the price of products like steel and cement hit a new low in recent years.

According to the price of change of industrial products, there was a serious situation for the weak demand and overcapacity of the heavy chemical industry. In view of that enterprises limit production to keep price and international commodity prices keep rising due to the stimulation of the US QE3, the price drop of domestic industrial products is expected to be slower gradually.

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