China: Industrial production growth falls to multi-year low in May
Industrial production increased 5.0% year-on-year in May, below the 5.4% rise registered in April. The print undershot market expectations of a 5.4% increase and represented the weakest expansion since 2002.
The reading reflected a sizeable deceleration in the electricity, heating power, gas, and water sector, while manufacturing output growth declined slightly. Conversely, growth in the mining sector gained steam in the same month.
On a month-on-month basis, industrial production increased 0.36% in seasonally-adjusted terms in May, broadly in line with April’s 0.37% increase. Annual average growth in industrial production, meanwhile, fell from 6.0% in April to 5.9% in May.
May’s weak print reflects headwinds stemming from the ongoing trade war with the United States and subdued global demand.