China’s industrial output rose 8.1% year on year last month according to State Statistical Bureau figures. The figure is down from 10.1% in June, and was lower than market expectations.

The main reason seems to be falling exports due to the global economic slowdown. China experienced a 0.6% drop in exports for the month of July – the first decline since the end of the Asian financial crisis. However, China is better placed than most in the region to cope with the world slump as it is less exposed to exports.

Some economists have pointed to the figures as a sign of a general downturn in the Chinese economy, but this is still predicted to grow at between 7 and 8% this year.

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