The industry production index (IIP) growth rate and inventory index both declined in the first six months of 2013 compared to the same period last year, largely due to the ongoing economic difficulties.
According to the General Statistics Office, the IPP increased 5.2 percent in the first half compared to 6.1 percent last year, while the inventory index fell 9.7 percent.
The GSO attributed the lower inventory index to the new tendency of businesses to sell products for cheaper than their production costs in an attempt to clear stock and retrieve their investment.
However, the GSO said the manufacturing sector’s inventory percentage was still high, at 75 percent in the first half of this year, well above the commonly regarded “secure level” of 65 percent.
Manufacturing and processing, which accounted of rover 70 percent of all industrial production, expanded 5.5 percent in the first six months. But this was still a slip from the 6.3 percent and beverages (up 10.5 percent).
Some products saw significant growth such as cast metal (up 14.6 percent), leather (up 16.5 percent), paper and paper products (up 14.5 percent) and beverages (up10.5 percent).
But several major products stayed flat and some even declined such as electricity production, which generated 59.8 billion kWh in the first six month, up just 8.5percent compared to the 14.7 percent growth over the same period last year.-VNA
According to the General Statistics Office, the IPP increased 5.2 percent in the first half compared to 6.1 percent last year, while the inventory index fell 9.7 percent.
The GSO attributed the lower inventory index to the new tendency of businesses to sell products for cheaper than their production costs in an attempt to clear stock and retrieve their investment.
However, the GSO said the manufacturing sector’s inventory percentage was still high, at 75 percent in the first half of this year, well above the commonly regarded “secure level” of 65 percent.
Manufacturing and processing, which accounted of rover 70 percent of all industrial production, expanded 5.5 percent in the first six months. But this was still a slip from the 6.3 percent and beverages (up 10.5 percent).
Some products saw significant growth such as cast metal (up 14.6 percent), leather (up 16.5 percent), paper and paper products (up 14.5 percent) and beverages (up10.5 percent).
But several major products stayed flat and some even declined such as electricity production, which generated 59.8 billion kWh in the first six month, up just 8.5percent compared to the 14.7 percent growth over the same period last year.-VNA
