China's industrial output up 18.1% in May
Posted: 14 June 2007 1021 hrs

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BEIJING - China's industrial output expanded by 18.1 percent in May from a year earlier, official data showed Thursday, as the government said further economic cooling measures were in the pipeline.

In the first five months of 2007, industrial production also rose 18.1 percent compared with the same period last year, the National Bureau of Statistics said in a statement.

The May data showed industrial output was continuing to pick up pace after a gain of 17.4 percent in April and 18 percent in the four months period.

In comments published Thursday, Chinese Premier Wen Jiabao said industrial output, like many sectors of the economy, was growing too fast and further cooling measures needed to be taken.

"There are still outstanding problems in the economy," Wen told a Wednesday meeting of China's cabinet, the State Council, according to a transcript published on the government's website.

Aside from industrial output, Wen said the trade surplus was too big, inflation was rising too quickly, while controlling pollution and energy use were proving extremely difficult.

Monetary policies should be "moderately tightened" to ensure stable economic growth, Wen said, as he pledged further efforts to slow the economy.

China's economy, the world's fourth largest, grew 11.1 percent in the first quarter of the year and has showed no signs of slowing down despite a raft of cooling measures that have included two interest rate hikes in 2007. - AFP/ir