CN: Industrial Production

Tue Apr 14 21:00:00 CDT 2015

Consensus Actual Previous
Yr/Yr % change 6.9% 5.6% 6.8%
M/M % Change 0.25% 0.45%

March industrial production expansion slowed to an increase of just 5.6 percent from a year ago after climbing 6.8 percent for January and February combined. The March rate was the slowest since November 2008. The increase was substantially below expectations of a 6.9 percent increase. For the month, output was up 0.25 percent. Expectations were for an increase of 6.9 percent.

Most categories with the exception of cement, electricity and power & thermal were up on the year. Motor vehicle production was up 3.5 percent on the year after increasing 4.6 percent the month before. Non-metal minerals output was up only 3.0 percent after increasing 10.4 percent in January/February. Ferrous metals output improved to 5.5 percent from 3.5 percent. Transport equipment was up 15.5 percent after 10.5 percent in January/February. Machinery slowed to a gain of 6.9 percent from 7.8 percent.

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.