| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Month over Month | 0.37% | 0.38% | ||
| Year over Year | 5.2% | 5.7% | 5.6% | 5.1% to 6.2% |
Highlights
Chinese industrial production rose 5.2 percent on the year in August, slowing from growth of 5.7 percent in July and below the consensus forecast of 5.6 percent. In month-over-month terms, industrial production rose 0.37 percent in July, little changed from an increase of 0.38 percent in July.
Within the industrial sector, manufacturing output rose 5.7 percent on the year in August, also moderating from an increase of 6.2 percent in July. Utilities output and mining output rose 2.4 percent and 5.1 percent on the year respectively, after previous increases of 3.3 percent and 5.0 percent respectively.
In their statement accompanying monthly data published today, officials characterised the data as showing the economy"maintained a generally stable momentum with steady progress" despite"unstable and uncertain factors in external environment. Officials reiterated their commitment to implement existing macroeconomic policies but provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Data published today were weaker than consensus forecasts. The China's RPI and RPI-P fell from plus 14 and plus 10 to minus 14 and minus 30 respectively, indicating that recent Chinese data in sum are coming in just below consensus forecasts.
Within the industrial sector, manufacturing output rose 5.7 percent on the year in August, also moderating from an increase of 6.2 percent in July. Utilities output and mining output rose 2.4 percent and 5.1 percent on the year respectively, after previous increases of 3.3 percent and 5.0 percent respectively.
In their statement accompanying monthly data published today, officials characterised the data as showing the economy"maintained a generally stable momentum with steady progress" despite"unstable and uncertain factors in external environment. Officials reiterated their commitment to implement existing macroeconomic policies but provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.
Data published today were weaker than consensus forecasts. The China's RPI and RPI-P fell from plus 14 and plus 10 to minus 14 and minus 30 respectively, indicating that recent Chinese data in sum are coming in just below consensus forecasts.
Market Consensus Before Announcement
Growth in industrial production is seen nearly flat at 5.6 percent on year in August versus 5.7 percent in July.
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.
