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China's industrial output for October was 375.3 billion yuan (US$45.2 billion), 17.2 per cent more than for the same period last year, the National Bureau of Statistics said yesterday.

September growth was 16.3 per cent, August, 17.1 per cent, and July, 16.5 per cent, over figures for the previous year, the bureau said earlier.

For the first 10 months, the industrial output grew a year-on-year 16.7 per cent to 3.27 trillion yuan (US$394.3 billion).

Three major industrial sectors - electronics and telecommunications equipment, machinery equipment and ferrous metals - were the major contributors, the bureau said.

The three sectors contributed 7 percentage points to the month's industrial growth, it said.

The transportation equipment sector's contribution to the total dropped, because production of automobiles slowed down in October, the bureau said.

The output of cars rose 52 per cent in October from figures for a year ago to 168,000 vehicles, while the output of all kinds of vehicles rose a year-on-year 21.4 per cent to 372,000 for the month.

The growth rate was 17.7 percentage points, 15.4 percentage points lower than figures for the previous month.

The value of exports for the industrial sector for October was 249.2 billion yuan (US$30 billion), a year-on-year increase of 29.4 per cent.

Yao Jingyuan, chief economist with the bureau, said the rapid industrial output growth suggests the country's economy has turned for the better having shrugged off negative impacts of severe acute respiratory syndrome and this year's floods.

"Production will continue to grow rapidly for the remaining two months," he said.

The rapidly rising fixed asset investment will continue to benefit heavy industries such as cement and steel, while increasing consumer demand will benefit light industries such as colour television sets and washing machines, he said.

Qiu Xiaohua, deputy commissioner of the bureau, said the rapid industrial growth is good news for the country's overall economy, as it has contributed more than 50 per cent of total gross domestic product (GDP).

"If there were no major unexpected fluctuations, the country's gross domestic product is likely to grow 8.5 per cent this year," he said.

During the first nine months, the country's GDP grew a year-on-year 8.5 per cent.

Qiu said he is confident that the Chinese economy will grow at a higher rate in the coming decades and that the industrial output will continue to rise rapidly.

"Market forces have begun to add fuel to the government-led economy," he said.

The micro-economic base for the current development has also been improving, as entrepreneurs and consumers have shown increased confidence in the future, he said.

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