China: Manufacturing activities drag on industrial production growth in May
Industrial production expanded 6.8% annually in May, decelerating from the 7.0% rise recorded in April and undershooting market expectations of a 7.0% increase.
Manufacturing activities led the slowdown in May. Conversely, the mining sector rebounded in annual terms in May and expanded at the fastest pace since March 2016, while electricity generation growth accelerated to a nearly five-year high. Importantly, growth in new economic drivers (mostly high-tech) continued to expand vigorously in May, suggesting that China is slowly moving up the manufacturing value chain.
On a month-on-month basis, industrial production expanded 0.58% in seasonally-adjusted terms in May, coming in below April’s 0.61% rise. Annual average growth in industrial production steadied at April’s 6.6% in May.