China’s factory output growth exceeds expectations

China’s industrial production expanded by 4.2% year on year in August 2022, above market expectations and July’s figure of 3.8%. It was the fourth consecutive month of rising in industrial output, and the sharpest in the series, indicating that the recent COVID wave may have crested, with manufacturing (3.1% compared to 2.7% in July) and utilities (13.6% vs 9.5%) both accelerating.

Meanwhile, mining production has decreased (5.3% vs. 8.1%). Manufacturing output increased quicker in the vehicle (30.5% vs 22.5%), power and heat production and supply industries (15.3% vs 10.4%), and general equipment (0.8% vs -0.4%) sectors. Meanwhile, output slowed for both chemical raw materials and chemical products (3.8% vs 4.7%); communication (5.5% vs 7.3%), with significant decreases in food processing industries (-2.3% vs -0.8%) and textiles (-5.1% vs -4.8%) production.

Industrial output increased by 3.6% in the first eight months of 2022 compared to the same time in 2021. From 1990 to 2022, China’s industrial production averaged 11.45 %, with a peak of 35.10 % in January 2021 and a low of -21.10 % in January 1990. China’s industrial production is predicted to reach 4.10 % by the conclusion of this quarter.