CN: Industrial Production


Thu Jun 11 00:30:00 CDT 2015

Consensus Actual Previous
Yr/Yr % change 6.0% 6.1% 5.9%
M/M % Change 0.52% 0.57%

Highlights
Output has accelerated for a second month suggesting some stabilization. May industrial production was up 6.1 percent on the year after increasing 5.9 percent in April. Expectations were for an increase of 6.0 percent. On the month, output was up 0.52 percent. For the year to date, production was up 6.2 percent. Output improved for textiles, non-metal minerals, general equipment and power & thermal. Motor vehicle output declined for a second month, this time by 1.6 percent after slipping 0.3 percent in April from the year before. Transport equipment grew at a slower pace, increasing 5.1 percent after 9.2 percent in April.

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.