| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Month over Month | 0.22% | 0.44% | ||
| Year over Year | 6.1% | 7.7% | 5.9% | 5.5% to 6.4% |
Highlights
Chinese industrial production rose 6.1 percent on the year in April, slowing from growth of 7.7 percent in March and just above the consensus forecast of 5.9 percent. In month-over-month terms, industrial production rose 0.22 percent in April after an increase of 0.44 percent in March.
Within the industrial sector, manufacturing output rose 6.6 percent on the year in April after increasing 7.1 percent in March. Utilities output and mining output rose 2.1 percent and 5.7 percent on the year respectively after previous increases of 1.9 percent and 6.2 percent respectively.
In their statement accompanying today's monthly activity data, officials characterised the data as showing the economy maintained stable growth despite pressure, with steady and fast growth in major indicators. Officials noted an increasing impact of external shocks and warned that there are many unstable and uncertain factors in the external environment. Although they again pledged to implement more proactive and effective macro policies", officials provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Activity data published today were mixed relative to consensus forecasts, with retail sales weaker and industrial production slightly stronger. The China's RPI fell from plus 14 to minus 14 while the RPI-P fell from plus 20 to minus 20, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
Within the industrial sector, manufacturing output rose 6.6 percent on the year in April after increasing 7.1 percent in March. Utilities output and mining output rose 2.1 percent and 5.7 percent on the year respectively after previous increases of 1.9 percent and 6.2 percent respectively.
In their statement accompanying today's monthly activity data, officials characterised the data as showing the economy maintained stable growth despite pressure, with steady and fast growth in major indicators. Officials noted an increasing impact of external shocks and warned that there are many unstable and uncertain factors in the external environment. Although they again pledged to implement more proactive and effective macro policies", officials provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Activity data published today were mixed relative to consensus forecasts, with retail sales weaker and industrial production slightly stronger. The China's RPI fell from plus 14 to minus 14 while the RPI-P fell from plus 20 to minus 20, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
Market Consensus Before Announcement
The consensus sees output growth slowing to 5.9 percent in April from 7.7 percent in March.
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.
