A few days ago the Yomiuri News on-line reported the following:
On the 13th the National Bureau of Statistics of
announced that the industrial production in August was an increase of 6.9%
compared with the corresponding month last year. China
Compared with July (an increase of 9.0%), it slowed down sharply, and had become a low level for the first time in five years eight months since the Lehman shock in December 2008 (increase of 5.7%).
The rate of increase was contracting for two consecutive months since July, and it was also likely to affect the economic growth rate for the term July - September.
Looking into the breakdown, for the same period it was an increase of the 3.1% in car production which was a slow down by 7.4 point from the previous month (an increase of 10.5%). Also in mobile phone production, it was a decrease of 2-3% from an increase (10.1%) of the previous month, it was a change into reduction and the weakness was conspicuous.
Serving as the backdrop was the slowdown in the production of construction materials such as crude steel and cement etc. due to a real estate investment stagnation, in addition to the increased production of mobile phones and car had run its course.
I think the situation will improve when the government relaxes its control over real estate investments.