China Industrial Production

China’s industrial production increased by 5.3% year-on-year in June 2024, beating market expectations of 5.0% while softening from a 5.6% growth in the prior month. The latest reading marked the second straight month of moderation in industrial output, with growth hitting its lowest since March, mainly due to a slowdown in manufacturing activity (5.5% vs 6.0% in May) as economic recovery stayed fragile. Among industries, 35 out of 41 major sectors posted growth, notably coal, mining & washing (4.4%), oil & natural gas (4.4%), chemical products (9.9%), textiles (5.1%), metal smelting and rolling processing (3.3%), non-ferrous metal smelting and rolling processing (10.2%), other transportation equipment (13.1%), automobile (6.6%), computer, communication and other electronic equipment (4.4%), and utilities (4.1%). Monthly, industrial activity expanded 0.4%, after a 0.3% rise in May. On a year-to-date basis, industrial output advanced 6.0%.