CN: Industrial Production

Fri Dec 11 23:30:00 CST 2015

Consensus Actual Previous
Yr/Yr % change 5.6% 6.2% 5.6%
M/M % Change 0.58% 0.46%

November industrial production improved to an increase of 6.2 percent from a year ago from 5.6 percent in October. On the month, output was up 0.58 percent after 0.48 percent the month before. For the year to date, output was up an unchanged 6.1 percent.

Among the subcategories, only cement output was down on the year, falling 6.6 percent. However, auto production was up for a second consecutive month, this time by 16.0 percent after 4.9 percent on the year in October. Textiles improved to an increase of 6.4 percent after 5.6 percent. However, chemicals eased to 8.5 percent from 9.5 percent. Machinery eased as well, to 6.4 percent from 7.3 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.