China's industrial output rose 10.8 percent in July from a year earlier, after gaining 10.7 percent in June, the National Bureau of Statistics (NBS) said Tuesday.

It is the second time since September last year that output saw double-digit growth after the government put in place powerful fiscal and monetary policies to boost economic growth.

The July growth rate was 3.9 percentage points lower than a year earlier level, but 0.1 percentage points higher than June.

The first seven months saw the growth of industrial output at 7.5 percent from a year earlier, higher than the 7 percent for the first half.

In July, the output of heavy industry rose 11.3 percent and light industry was up 9.2 percent. All 39 sectors posted year-on-year growth, with textiles up 8.6 percent, and chemical materials and products up 11.7 percent.

Coal output rose 14.8 percent from a year earlier to 260 million tonnes, and crude oil output dropped 0.3 percent to 16.14 million tonnes. Steel output climbed 12.6 percent to 50.68 million tonnes. Power generation increased 4.8 percent.

NBS spokesman Li Xiaochao said industrial output continued to accelerate in July, up from 10.7 percent in June, and 8.9 percent in May.

He said industrial companies were still facing falling profits as the industrial sector in 22 regions saw a 21.2-percent drop in profits in the first half and might continue to post bigger falls.

Zhang Yongjun, researcher with the State Information Center, a government think tank, said the continuous increase of industrial output reflected rising demand.

He said the industrial production would keep growing steadily as foreign trade showed signs of an upturn in July and would continue the trend with the economic upswing in developed countries.

Peng Wensheng, an analyst with Barclays Capital, said in a statement e-mailed to Xinhua that industrial production grew at a weaker-than-expected pace. Barclays Capital forecast 12.5 percent annual growth in July.

"Owing to a low basis a year earlier, we expect industrial output to rise further in the second half to reach 18 percent towards year-end," he said.

(Xinhua News Agency August 11, 2009)