China Industrial-Output Growth Is Slowest in 7 Years

China's industrial output grew at a slower pace than any economist forecast in October, stoking concern that the biggest contributor to global growth is running out of steam.

Production rose 8.2 percent from a year earlier, the smallest gain in seven years, the statistics bureau said today. That was down from 11.4 percent in September.

The slowdown may prompt the central bank to cut interest rates for the fourth time in two months to augment a $586 billion package of government spending on housing and infrastructure, announced on Nov. 9.

The one-year lending rate is 6.66 percent after three cuts totaling 81 basis points since September. China's third-quarter economic expansion of 9 percent was the weakest in five years.

The yuan traded at 6.8305 against the dollar as of 11:48 a.m. in Shanghai, from 6.8301 before the announcement.

The economic slowdown, driven by falling export orders, weakness in real estate, and blows to confidence from the global crisis, is hurting companies from carmakers to metal producers.

Aluminum Corp. of China Ltd., or Chalco, the nation's biggest producer of the metal, is idling alumina capacity, while PSA Peugeot Citroen, Europe's second-largest carmaker, cut 1,000 temporary workers in China after sales dropped.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.