| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | 0.35% | 0.42% | |
| Year over Year | 5.1% | 5.3% | 5.3% |
Highlights
Chinese industrial production rose 5.1 percent on the year in July, moderating from growth of 5.3 percent in June. In month-over-month terms, industrial production rose 0.35 percent in July after increasing 0.42 percent in June.
Within the industrial sector, manufacturing output rose 5.3 percent on the year in July after increasing 6.0 percent in June. Utilities output and mining output rose 4.0 percent and 4.6 percent on the year respectively after increasing 4.3 percent and 3.6 percent respectively in June.
Officials characterised the monthly data published today as showing that"the national economy was generally stable with steady progress", as they did last month. However, they also cautioned that"the adverse impact brought by external environment is increasing, effective demands remain insufficient at home, pains are caused while old growth drivers are replaced by new ones, and sustained economic recovery is still confronted with multiple difficulties and challenges". Having reduced the loan prime rate last month, officials provided little guidance about whether additional policy measures will be considered in the near-term.
Data published today were generally close to consensus expectations. The China's RPI and RPI-P fell from minus 14 and minus 40 to minus 29 and minus 60 respectively, indicating that recent Chinese data in sum are now coming well below consensus forecasts.
Within the industrial sector, manufacturing output rose 5.3 percent on the year in July after increasing 6.0 percent in June. Utilities output and mining output rose 4.0 percent and 4.6 percent on the year respectively after increasing 4.3 percent and 3.6 percent respectively in June.
Officials characterised the monthly data published today as showing that"the national economy was generally stable with steady progress", as they did last month. However, they also cautioned that"the adverse impact brought by external environment is increasing, effective demands remain insufficient at home, pains are caused while old growth drivers are replaced by new ones, and sustained economic recovery is still confronted with multiple difficulties and challenges". Having reduced the loan prime rate last month, officials provided little guidance about whether additional policy measures will be considered in the near-term.
Data published today were generally close to consensus expectations. The China's RPI and RPI-P fell from minus 14 and minus 40 to minus 29 and minus 60 respectively, indicating that recent Chinese data in sum are now coming well below consensus forecasts.
Market Consensus Before Announcement
Year-over-year growth in industrial production rose 5.0 percent in June versus expectations for 5.3 percent and after 5.6 percent growth in May. Expectations for July is 5.3 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.
