| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | 0.32% | 0.35% | |
| Year over Year | 4.5% | 5.1% | 4.6% |
Highlights
Chinese industrial production rose 4.5 percent on the year in August, slowing from growth of 5.1 percent in July for the lowest growth rate since March. In month-over-month terms, industrial production rose 0.32 percent in August after increasing 0.35 percent in July.
Within the industrial sector, manufacturing output rose 4.3 percent on the year in August after increasing 5.3 percent in July. Utilities output and mining output rose 6.8 percent and 3.7 percent on the year respectively after increasing 4.0 percent and 4.7 percent respectively in July.
Officials characterised the monthly data published today as showing that"the national economy maintained stability in general while making steady progress", broadly in line with comments made in recent months. However, they also cautioned that"the adverse impacts arising from the changes in the external environment are increasing, effective demands remain insufficient at home, and the sustained economic recovery is still confronted with multiple difficulties and challenges". Officials, however, provided little guidance about whether changes to policy settings will be considered in the near-term.
Data published today were slightly weaker than consensus expectations. The China's RPI and RPI-P fell from minus 43 and minus 40 to minus 64 and minus 70 respectively, indicating that recent Chinese data in sum are now coming well below consensus forecasts.
Within the industrial sector, manufacturing output rose 4.3 percent on the year in August after increasing 5.3 percent in July. Utilities output and mining output rose 6.8 percent and 3.7 percent on the year respectively after increasing 4.0 percent and 4.7 percent respectively in July.
Officials characterised the monthly data published today as showing that"the national economy maintained stability in general while making steady progress", broadly in line with comments made in recent months. However, they also cautioned that"the adverse impacts arising from the changes in the external environment are increasing, effective demands remain insufficient at home, and the sustained economic recovery is still confronted with multiple difficulties and challenges". Officials, however, provided little guidance about whether changes to policy settings will be considered in the near-term.
Data published today were slightly weaker than consensus expectations. The China's RPI and RPI-P fell from minus 43 and minus 40 to minus 64 and minus 70 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 a lower-than-expected 5.1 percent in July after 5.3 percent growth in June. Expectations for August is 4.6 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.
