China: Industrial output records largest decline in over two years in April
Industrial output declined 2.9% compared to the same month of the previous year in April, which contrasted March’s 5.0% increase and contrasted market expectations of an increase. April’s outturn marked the worst reading since February 2020. The result came on the back of a contraction in manufacturing production, as many factories were forced to temporarily close or reduce output due to Covid-19 curbs. Such curbs are likely to continue hindering manufacturing output in May. In addition, mining and quarrying production lost pace.
On a seasonally-adjusted monthly basis, factory output plunged 7.1% in April (March: +0.4% mom), the worst result since February 2020. Meanwhile, the trend pointed down, with the annual average growth of industrial production coming in at 4.8% in April, down from March’s 6.0%.