China: Output growth of the manufacturing sector continued to slow - Nomura

Sandeep Kanihama FXStreet Contributor

China’s September IP growth of 5.8% y-o-y (Consensus: 6.0%; Nomura: 5.9%) was much weaker than the average growth rate of 6.5% in January-August this year (2017: 6.6%), explains the research team at Nomura.

Key Quotes

“The slowdown was weighed upon by the manufacturing sector, the output growth of which fell to 5.7% y-o-y in September from 6.1% in August. Mining sector output growth rose to 2.2% from 2.0% and utility sector output growth rose to 11.0% from 9.9%. In month-on-month terms, IP growth remained at 0.5%, unchanged from August.”

“Output growth of industrial products largely slowed. Growth of power generation moderated to 4.6% y-o-y in September from an average of 7.7% y-o-y in January-August (2017: 5.9%), production growth of industrial robots fell sharply to -16.4% from 19.4% in January-August (2017: 81.0%), and production growth of new energy cars slowed to 50.0% from 56.0% (2017: 51.2%).”

“Growth of delivered value for exports remained solid, albeit slowing slightly to 11.7% y-o-y from 12.5% in August, and we expect it to remain resilient over the rest of 2018 but face downside challenges next year.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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