SHANGHAI'S industrial production rose 0.1 percent from a year earlier in October, ending a losing run since June and signaling a long-awaited economic recovery, the Shanghai Statistics Bureau said yesterday.
The industrial output climbed to 260 billion yuan (US$41.8 billion) last month, with a higher output achieved by consumer goods producers. In September, the city's industrial output fell 1 percent.
"The expanding industrial production shows the domestic demand is recovering," said Xue Jun, an analyst at CITIC Securities Co.
The output of Shanghai's six pillar industries - information technology, auto, petroleum, refined steel, machinery equipment and biomedicine - added 0.7 percent to 175.1 billion yuan last month. It rebounded from a 2 percent fall in September, and was led by the biomedicine and auto sectors, which powered 7.1 percent and 5.2 percent respectively.
Shanghai's fixed-asset investment, however, rose by a slower 4.8 percent to 392.6 billion yuan in the first 10 months of this year, compared with an increase of 5.2 percent in the first three quarters because of less investment in the property sector, the bureau said.
Foreign direct investment in Shanghai climbed 14.6 percent to US$1.21 billion in October, a slowdown from an increase of 35.9 percent in September.
Shanghai's gross domestic product grew 7.4 percent year on year in the first nine months amid a higher comparative base, accelerated economic restructuring and more exposure to external markets. In the same period of last year, the GDP gained 8.2 percent.
Yan Jun, the bureau's chief economist, said earlier that Shanghai may still meet the targeted 8 percent this year. But Xue warned a decline in trade may derail the city from meeting the target.
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