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CN: Industrial Production
| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | 0.54% | 0.11% | ||
| Year over Year | 4.85% | 4.8% to 5.0% | 5.2% | 4.5% |
Highlights
Chinese industrial production rose 5.2 percent on the year in August, up from growth of 4.5 percent in July and above the consensus forecast of 4.85 percent. In month-over-month terms, output rose 0.54 percent after a previous increase of 0.11 percent.
In sectoral terms, manufacturing output rose 6.1 percent on the year, mining output fell 1.4 percent, and utilities output rose 4.9 percent. Output for state-owned enterprises is up 3.0 percent, while output for private enterprises is up 5.7 percent.
In their statement accompanying today's data, officials characterised the data as showing the economy"was generally stable". Although officials did not explicitly refer to the Iran conflict, they judged that"the adverse impact of the external environment has intensified". Although officials provided no guidance about whether changes to policy settings will be considered in the near-term, they said they have"strived to make the macro policies more effective" and spoke of the need to"step up macro-policy adjustment".
Market Consensus Before Announcement
The consensus sees output up 4.9 percent in August, better than the 4.5 percent increase 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.