As the financial crisis further deepens, China's software sector saw a 5.7% drop in the revenue growth rate during the first five months of 2009 and the ongoing industrial restructuring continued, the Ministry of Industry and Information Technology (MIIT) released in a report this week.

According to the report, China's software sector generated 329.14 billion yuan ($48.19 billion) in revenue in the first five months of 2009, up 23.3% year on year.

However, the growth rate was down 0.2% compared with that of Jan-Apr, and a further 5.7% fall compared with the same period last year as a result of the financial crisis, the report said.

Sales of software products surged 24.2% to 115.22 billion yuan ($16.87 billion), accounting for 35% of the total software industry revenue.

The income of software and technology services hit 65.93 billion yuan ($9.65 billion), up 28.2%. Revenues of embedded system software hit 61.02 billion yuan ($8.93 billion), up 20.9%.

System integration income rose 20.9% to 77.38 billion yuan ($11.33 billion), while revenues generated from integrated circuit design jumped 15.4% to 9.58 billion yuan ($1.4 billion), the ministry said.

The export of software totaled 65.93 billion, 54.2% up compared with the same period last year. The growth rate of software export is 6% higher than that of Jan-Apr, and 9.2% up compared with the same period of last year.

Out of the total export, software outsourcing service account to $6.7 billion, 59% up year on year. The growth rate was up 33.2% compared with that of Jan-Apr, but still 9.3% down over the same period last year.

($ 1 = 6.83004773 yuan)

Software Down China