China: Industrial production continues moderating in May
June 13, 2011
In May, industrial production expanded 13.3% over the same month last year. The reading virtually matched the previous month's 13.4% expansion, but overshot market expectations of a 13.1% increase. The higher-than-expected outturn for May alleviates concerns among analysts about a hard landing going forward. Industrial growth was mainly led by heavy industries, in particular by general machinery and non-metal mineral products sectors. According to the seasonally adjusted month-on-month indicator released for the first time in April by the National Bureau of Statistics, industrial production rose 1.03% in May, which was above the previous month's 0.92% increase. Owing to the subdued May reading, annual average growth in industrial production continued to slow, falling from 13.9% in April to 13.7%, which represents the slowest rate since February 2010.