MercoPress. South Atlantic News Agency

Chinese industrial production cooling.

For the fifth consecutive month China's industrial growth during July slowed down but the Central Bank stressed credit restrictions remain in full effect with the purpose of ensuring a soft landing for the overheated economy.

Annual production in the twelve months ending in July recorded a 15,5% expansion, compared to the 16,2% of June, according to the Chinese Statistics Office.

Although still high, and in the range expected by market and local analysts, it's far from the peak recorded last February when it reached 23,3% making authorities fear that a further strain in energy and other resources could fuel inflation and shortages.

Analysts forecast that the credit restrictions imposed particularly in several industrial areas will help the moderate contracting tendency to remain steady.

"At the moment all seems to be heading for a moderate declination, which is positive for the entire region", said market analyst Michael Chu.

Some economists and local authorities have suggested the government should ease some of the credit restrictions particularly for the small private companies.

However Central Bank officials believe it's too early to consider the situation fully under control.

China is the world's seventh economy and has been growing for several years at a nerve racking pace causing distortions in energy and commodities markets.