China: Industrial production broadly stable in August

Industrial production expanded 6.1% annually in August, slightly above July’s 6.0% and matching market expectations.

August’s print reflected an acceleration in electricity generation and mining output, while manufacturing production growth edged down.

On a month-on-month basis, industrial production increased 0.52% in seasonally-adjusted terms in August, above July’s 0.47% expansion. Annual average growth in industrial production, meanwhile, edged up from 6.4% in July to 6.5% in August. Despite the slight improvement in August, growth in industrial production remains sluggish and the trend could even worsen in the coming months when spillovers from the ongoing trade dispute with the United States start to kick in.

China Industrial Production Forecast

FocusEconomics Consensus Forecast participants expect industrial production to rise 6.4% in 2018, which is unchanged from last month’s forecast. In 2019, the panel sees industrial production growth decelerating to 6.1%.