| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Month over Month | 0.50% | 0.61% | ||
| Year over Year | 6.8% | 5.8% | 5.6% | 5.5% to 5.8% |
Highlights
Chinese industrial production rose 6.8 percent on the year in June, picking up from growth of 5.8 percent in May and well above the consensus forecast of 5.6 percent. In month-over-month terms, industrial production rose 0.50 percent in June after an increase of 0.61 percent in May.
In their statement accompanying quarterly and monthly data published today, officials characterised the data as showing the economy"withstood pressure and made steady improvement despite challenges". Although officials refrained from explicitly referring to trade tensions with the United States, they noted a need to"coordinate domestic economic work and endeavours in the international economic and trade field" and to"cope with external uncertainties". Officials reiterated their commitment to"more proactive and effective macro policies" but provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Data published today were mixed relative to consensus forecasts. The China's RPI and RPI-P rose from minus 7 and minus 10 respectively to zero, indicating that recent Chinese data in sum are coming in at consensus forecasts.
In their statement accompanying quarterly and monthly data published today, officials characterised the data as showing the economy"withstood pressure and made steady improvement despite challenges". Although officials refrained from explicitly referring to trade tensions with the United States, they noted a need to"coordinate domestic economic work and endeavours in the international economic and trade field" and to"cope with external uncertainties". Officials reiterated their commitment to"more proactive and effective macro policies" but provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Data published today were mixed relative to consensus forecasts. The China's RPI and RPI-P rose from minus 7 and minus 10 respectively to zero, indicating that recent Chinese data in sum are coming in at consensus forecasts.
Market Consensus Before Announcement
Growth in industrial production is seen declining to 5.6 percent on year in June from 5.8 percent in May.
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.
