China's software sector experiences slowdown

Country's software sector generates 117 billion yuan in profits for first half of 2012, but growth rate slows from 35.2 percent in 2011 to 10.6 percent.

The software market in China continues to generate profits during the first half of 2012, but its rate of growth has slowed from the same time last year due to the weak global economy.

According to China Daily's report on Monday, the industry raked in 117 billion yuan (US$18 billion) during the first six months of the year, which is a spike of 10.6 percent year-on-year. However, the pace of growth has slowed from the 35.2 percent growth during the same timeframe, it noted, citing information from the Ministry of Industry and Information Technology (MIIT).

Similarly, revenue grew by 26.2 percent to 1.1 trillion yuan (US$216.9 billion) during that period, but it was 3.1 percent lower than 2011's. Exports garnered US$16.24 billion, which represented a 11.7 percent increase, but this was also 6 percent lower than the first half of last year.

Analysts told China Daily the industry's slowdown was due to intensifying competition and weak external demand.

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