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China's home appliance industry slows in 2008

By Yu Hongyan (chinadaily.com.cn)
Updated: 2009-02-26 14:40

Production of China's home appliance industry shrunk in the second half of 2008 as export demand fell, the Ministry of Industry and Information Technology said.

Related readings:  China promotes home appliance subsidy program in rural areas  Household appliance sector sees tough days ahead  Output of home appliance industry grows 21.77%

The total output growth in 2008 slowed to 13.9 percent year-on-year from 26.1 percent registered in 2007. Home appliances sales grew at an annualized rate of 13.3 percent, 14.9 percentage points lower that the comparative rate in 2007.

The sales-to-output ratio was 97.9 percent industry-wide and exports rose 13.7 percent year-on-year, down from the 25 percent growth in 2007, according to figures from China Household Electrical Appliances Association.

Output of some major products, notably vacuum cleaners, dropped as much as 13 percent from year earlier, followed by the electric fans, down 11 percent. Production of air conditioners, freezers and microwave ovens fell at a much lower rate at below 5 percent.

Meanwhile, the country produced 23.4 percent more ventilators in 2008, and production of washing machines, refrigerators, and heaters rose an average 10 percent year-on-year.