China's industrial output, which grew at 14.7 per cent in October 2006, over a year ago, is its slowest annual growth rate since December 2004, according to official data.

In September 2006, manufacturing grew at 16.1 per cent, below the high 19.5-per cent growth it reported in June.

Chinese manufacturing has slowed down as the government has been tightening controls on credit and investment and raising interest rates among other monetary measures to redirect its goods from the global to domestic markets and also bring down its vast trade surplus with its western trading partners.

In September China's trade surplus for the year had reached $110 billion.

Despite the slowdown in manufacturing growth, Chinese retail sales and export demand remained strong during October. China's output growth is a key measure of its economic buoyancy.