| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | 0.42% | 0.30% | |
| Year over Year | 5.3% | 5.6% | 5.0% |
Highlights
Chinese industrial production rose 5.3 percent on the year in June, moderating from growth of 5.6 percent in May. In month-over-month terms, industrial production rose 0.42 percent in June after increasing 0.30 percent in May.
Officials characterised GDP and monthly data published today as showing that"the national economy was generally stable with steady progress". However, they also cautioned that"the external environment is intertwined and complex, the domestic effective demand remains insufficient and the foundation for sound economic recovery and growth still needs to be strengthened". After noting in recent months that they will seek to"frontload and effectively implement" macroeconomic policies that have already been introduced, today's statement did not contain this language, perhaps indicating that some adjustment to policy settings may be considered in the near-term.
Data published today were generally weaker than expected. The China's RPI and RPI-P, however, rose from minus 29 and minus 30 to minus 7 and zero respectively, indicating that recent Chinese data in sum are now coming in close to consensus forecasts.
Officials characterised GDP and monthly data published today as showing that"the national economy was generally stable with steady progress". However, they also cautioned that"the external environment is intertwined and complex, the domestic effective demand remains insufficient and the foundation for sound economic recovery and growth still needs to be strengthened". After noting in recent months that they will seek to"frontload and effectively implement" macroeconomic policies that have already been introduced, today's statement did not contain this language, perhaps indicating that some adjustment to policy settings may be considered in the near-term.
Data published today were generally weaker than expected. The China's RPI and RPI-P, however, rose from minus 29 and minus 30 to minus 7 and zero respectively, indicating that recent Chinese data in sum are now coming in close to consensus forecasts.
Market Consensus Before Announcement
Year-over-year growth in industrial production rose a lower-than-expected 5.6 percent in May with expectations for June at 5.0 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.
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.
