The National Bureau of Statistics Monday said manufacturing businesses invested 100 billion yuan (US$12 billion) during the five months through May. That represents a 27.1 percent year-on-year growth.

Investments in all categories jumped 20.3 percent, up from 16.5 percent during the January-April period.

Investment growth in manufacturing industries was meagre during 1997-1999 because over-production plagued almost all these industries.

The situation began to reverse last year as domestic consumption growth gradually picked up speed.

The investment surge in manufacturing sectors in the first five months was coupled with the government's continued input into infrastructural projects. These projects are the centrepiece of a three-year-old pump-priming policy.

The bureau said infrastructural investment growth continued to escalate, but did not provide concrete figures.

Bureau analysts said they expected a bigger amount of government money will be injected into infrastructural projects later this year.

But observers say the opportunity for the government to reduce its stimulus measures next year is gaining momentum and will continue to gather pace if investment growth in manufacturing and consumption growth maintain their pace.

Finance Minister Xiang Huangcheng said earlier this year that the proactive fiscal policy should not be a long-term one.

He said the major part of fresh money being injected this year is for the completion of projects launched at the start of the pump-prime program.

(chinadaily.com.cn 06/19/2001)