China: Growth in industrial production slows in September
October 19, 2016
In September, industrial production expanded 6.1% over the same month of last year, which was below August’s five-month high of 6.3%. The print failed to accelerate to the 6.4% increase that market analysts had expected. September’s reading reflected weaker growth in manufacturing production, which hit a seven-month low. In contrast, the mining subcomponent returned to growth in September, while electricity, gas and water supply activities expanded at a faster pace than in the previous month.
On a monthly basis, industrial production expanded 0.47% in seasonally-adjusted terms in September, which was below the 0.53% increase in August. After following an uninterrupted downward trajectory since late 2013, the trend now seems to be towards stabilization. Annual average growth in industrial production stabilized at August’s 6.0% in September.
September’s deceleration in industrial production was mainly driven by the closure of some factories around Hangzhou in order to reduce air pollution in the first week of September, due to the G20 meeting, and weak external demand.