China: Industrial output records slowest expansion since December 2020 in May
Industrial production expanded 8.8% year-on-year in May (April: +9.8% yoy). May’s outturn marked the worst reading since December 2020 and missed market expectations, with activity potentially weighed on by surging input prices and port disruptions in Guangdong province. Looking at the details of the release, manufacturing production expanded at a softer pace in May, while energy output gained momentum. Meanwhile, mining and quarrying output growth was steady from the previous month.
On a monthly basis, factory output grew 0.5% in seasonally-adjusted terms in May, matching April’s expansion. Meanwhile, the trend improved, with the annual average growth of industrial production coming in at plus 12.2%, up from April’s 11.8%.