CN: Industrial Production


Wed May 13 00:30:00 CDT 2015

Consensus Actual Previous
Yr/Yr % change 6.0% 5.9% 5.6%
M/M % Change 0.57% 0.25%

Highlights
April industrial production improved to 5.9 percent from 5.6 percent in March on the year. However, it still missed forecasts for a 6 percent increase. The March figure was the slowest reading since November 2008. The lackluster data add to second quarter weakness already seen in last week's trade and inflation numbers. On the month, output was up 0.57 percent after rising 0.26 percent in March. For the year to date, production was up 6.2 percent after increasing 6.4 percent.

Output improved for textiles, chemical, non-metal minerals and ferrous metals. However, output dropped for transportation equipment, machinery and communications. Motor vehicle production dropped 0.3 percent after increasing 3.5 percent the month before.


Definition
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.

Description
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.