China: Industrial output notches quickest growth since March in August
Industrial output increased 4.2% compared to the same month of the previous year in August, which was above July’s 3.8% increase. The figure marked the best reading since March and beat market expectations. August’s upturn was primarily due to faster growth in manufacturing and energy output. Energy output in particular was likely boosted by strong power demand for cooling, as the country suffered from the worst heatwave in decades. Moreover, manufacturing gained steam despite some factory closures during the month as a result of power shortages. In contrast, mining growth eased.
On a monthly basis, factory output increased 0.3% in seasonally-adjusted terms in August, which was below July’s 0.4% expansion. Meanwhile, annual average industrial production growth fell to 3.5% in August (July: +3.7%).