CN: Industrial Production


Sun Oct 18 21:00:00 CDT 2015

Consensus Actual Previous
Yr/Yr % change 5.9% 5.7% 6.1%
M/M % Change 0.38% 0.53%

Highlights
Industrial output decelerated to 5.7 percent, the slowest since March, from 6.1 percent in August. Expectations had been a slowdown to only 5.9 percent. The decline in industrial activity reflects the same trends in overcapacity that have driven producer prices into deflation for 43 straight months. On the month, output was up 0.4 percent. For the year to date, production was up 6.2 percent. Motor vehicle production dropped 4.7 percent after sinking 6.5 percent in August. Auto production has declined for six consecutive months. Machinery however improved. It was up 7.9 percent after increasing only 6.9 percent in August.

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.