China Industry


China: Growth in industrial production falls to six-year low at the beginning of the year

March 11, 2015

In the January-February period, industrial production expanded 6.8% over the same period last year, which was below the 7.9% increase recorded in December. Authorities usually report the January and February data together in order to smooth out distortions related to the Chinese New Year holiday. The increase tallied in the first two months of the year undershot the 7.7% expansion that market analysts had expected and represented the weakest gain since February 2009. The print mainly reflected a softer expansion in manufacturing output. Conversely, growth in electricity, gas and water supply as well as in mining accelerated in the same period.

On a monthly basis, industrial production expanded 0.45% in seasonally-adjusted terms in February, which was slightly down from the 0.47% increase tallied in January. As a result of the weak growth observed at the beginning of the year, the trend continues to point downward; annual average growth in industrial production ticked down from December’s 8.3% to 8.0% in February, which marks the lowest reading on record.

For 2015, FocusEconomics Consensus Forecast panelists expect industrial production to grow 8.0%, which is unchanged from last month’s projection. In 2016, the panel sees industrial production growth declining to 7.4%.

Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Industry in China? Download a sample report now.


China Industry Chart

China Industry February 2015

Note: Year-on-year variation of industrial production index and annual average growth rate in %. Owing to seasonal factors related to the Lunar New Year, annual figures in January and February are reported together.
Source: National Bureau of Statistics of China (NBS) and FocusEconomics calculations.

China Economic News

More news

Search form