CN: Industrial Production

Mon Jan 19 20:00:00 CST 2015

Consensus Actual Previous
Yr/Yr % change 7.5% 7.9% 7.2%
M/M % Change 0.75% 0.52%

December industrial production was up 7.9 percent on the year after increasing 7.2 percent in November. Analysts expected an increase of 7.5 percent. For the year 2014, output was up 8.3 percent, down substantially from 9.7 percent for the year 2013. On the month, production improved to a gain of 0.75 percent from 0.54 percent in November.

All categories with the exception of cement were up on the year. Motor vehicle production was up 3.7 percent on the year after increasing only 2.6 percent the month before. Non-metal minerals output was up 8.7 percent after increasing 7.8 percent in November. Ferrous metals and general equipment output both improved to increases of 8.0 percent and 7.3 percent respectively. Transport equipment was up 15.2 percent after 12.9 percent in November. Machinery improved with a gain of 7.7 percent, up from 6.3 percent. Steel products gained 6.4 percent after increasing only 1.2 percent the month before.

Industrial production measures the change in the total inflation adjusted value of output produced by manufacturers, mines and utilities. Data are compared with the same month a year earlier.

Chinese data can have a broad impact on the currency markets due to China's dominant influence on the global economy and investor sentiment. It's a leading indicator of economic health. Production is the dominant driver of the economy and reacts quickly to ups and downs in the business cycle. No data are published in February for January.

The industrial growth rate is used to reflect a certain period of increase or decrease in volume of industrial production indicators. The indicator can be used to estimate the short term trend of the industrial economy, to judge the extent of the economic boom and also to be an important reference and basis for the formulation and adjustment of economic policies.