Chinese industrial production rose 3.9 percent on the year in March, accelerating from an increase of 2.4 percent on the year for January and February combined and matching the consensus forecast. Separate year-over-year data for January and February are not published because of the impact of differences in the timing of lunar new year holidays from year to year. In month-over-month terms, industrial production rose 0.12 percent in March, as it did in February.

Year-over-year growth in industrial production is expected to accelerate to 3.9 percent in March versus growth of 2.4 percent in the combined months of January and February.

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.