CN: Industrial Production


Thu Jan 19 20:00:00 CST 2017

Consensus Actual Previous
Yr/Yr % change 6.1% 6.0% 6.2%
M/M % Change 0.46% 0.5%

Highlights
December industrial production was up 6.0 percent when compared with December 2015 after increasing 6.2 percent in November. Expectations were for an increase of 6.1 percent. Output was up 0.46 percent on the month after increasing 0.51 percent in November.

Among the major categories, mining was down 2.5 percent on the year after declining 2.9 percent the month before. Non-ferrous metals were down 0.8 percent. All other categories advanced. Of the major industries, communication equipment jumped 13.5 percent after increasing 8.9 percent in November on the year.

In the major product categories, output on the year of cement was down 1.2 percent, steel products slipped 0.2 percent and coal was 3.0 percent lower. Auto output was up 12.7 percent but this follows increases of 17.8 percent in November and 18.0 percent in October. September's auto output was 31.5 percent.

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.