Industrial output growth may come in at a six-year low this month because of restrictions on factories and construction to keep the air clean during the eight-day Asia-Pacific Economic Cooperation meeting, a leading financial institution said on Wednesday.

 

The impact of the APEC restrictions could be "significant" because six provinces and cities were involved, according to Beijing Gao Hua Securities Co Ltd, a financial services firm that has a partnership with Goldman Sachs Group Inc.

 

Gao Hua Securities said that November industrial production may increase about 6.9 percent year-on-year, on a par with the August figure, which was the lowest level since February 2009.

 

"As a result, we think the likelihood of further policy loosening has increased," said Song Yu and Maggie Wei, economists from the brokerage.

 

In the first 12 days of November, the cities of Beijing, Tianjin and four surrounding provinces cut production by highly polluting industries, especially the steel, cement and chemical sectors. Construction work at major sites was suspended as well.

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