CN: Industrial Production


Wed Oct 18 21:00:00 CDT 2017

Consensus Actual Previous Revised
Yr/Yr % change 6.5% 6.6% 6.0%
M/M % Change 0.56% 0.46% 0.45%

Highlights
Chinese industrial production grew 6.6 percent on the year in September, up from 6.0 percent in August and just above the consensus forecast of 6.5 percent. Industrial production rose 0.56 percent on the month in September after an increase of 0.45 percent in August.

The increase in headline industrial production growth in September reflects stronger growth in manufacturing output, up 8.1 percent on the year after an increase of 6.9 percent in August. This is the fastest growth in the sector so far this year, with stronger year-on-year increases in the production of textiles, communications equipment, and chemicals outweighing weaker increases in automobiles, steel products and electric machinery. Utilities output advanced by 7.8 percent on the year in September, down from 8.7 percent in August, while mining output fell by 3.8 percent on the year after a drop of 3.4 percent in August.

The decline in year-on-year growth in manufacturing output shown in today's data follows conflicting indications from PMI surveys in September. The headline index for the official CFLP manufacturing PMI survey increased sharply in September but the same index for the Caixin PMI survey fell.

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.