Fears as China output slows

Published on 11/06/2012 00:00

China’s factory output rose by 9.6 per cent year-on-year in May, missing expectations and further entrenching concerns that the world’s second-largest economy may slip into its worst downturn in years.

Economists had expected China’s industrial output to rise by 9.9 per cent in May, improving slightly from the three-year lows of 9.3 per cent struck in April.

Government data also revealed exports jumped last month, though the increase is unlikely to be enough to ease pressure on China’s leaders to reverse a sharp economic slump.

The Chinese central bank made a surprise move on Thursday, cutting interest rates.