CN: Industrial Production


Tue Jul 14 21:00:00 CDT 2015

Consensus Actual Previous
Yr/Yr % change 6.0% 6.8% 6.1%
M/M % Change 0.64% 0.52%

Highlights
June industrial production was up a greater than expected 6.8 percent from a year ago after increasing 6.1 percent in May. For the year to date, output was up 6.3 percent. Output increased 0.64 percent on the month, up from 0.54 percent in May. Most sub-categories improved.

Motor vehicle output improved to an increase of 0.7 percent after sinking in both April and May. Non-metal minerals were up 7.0 percent after increasing 5.1 percent the month before. Ferrous metals also improved, increasing 6.6 percent after 5.7 percent. Transport equipment gained 8.0 percent after 5.1 percent the month before. However, cement output continued to decline, this time by 5.8 percent. The data paint a picture of an improving economy.

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.