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March industrial output speeds up on state demand
By Richard Fu |
April 13, 2012, Friday
|
Online Edition
Online Edition
CHINA'S industrial output rose at a faster pace last month as government infrastructure projects kept major factories expanding despite a weak export front.
Industrial production rose 11.9 percent in March from a year earlier, after rising 11.4 percent in the January-February period, data from the National Bureau of Statistics showed today. A Bloomberg News economist survey had a median estimate of 11.6 percent.
"This is actually a decent IP print," Glenn Levine at Moody's Analytics wrote in a note. Moody's Analytics forecast a 12 percent increase.
The industrial output data is closely correlated with gross domestic product growth in China, a mainly manufacturing-driven economy. The better-than-expected data followed the strong official Purchasing Managers' Index numbers.
The PMI earlier released by the China Federation of Logistics and Purchasing hit 53.1 in March from 51 in February. This survey is targeted at big, state-owned enterprises that are tied to domestic demand.
This is despite a separate PMI by HSBC, which is skewed towards smaller, private, and export-oriented firms, that fell to 48.3 in March, down from 49.6 in February.
"The uptick (in industrial output) was foreshadowed by some good official PMI numbers in the opening months of 2012 as China's large, state-owned factories are still expanding, helped by the government's various public infrastructure projects," Levine said, adding fixed-asset investment figures also released today showed that railway construction is rising again.
He said that China's solid consumer sector, alongside a strong lift in state-led investment, will be enough to keep China's industrial sector ticking over a solid clip through 2012.
The Ministry of Industry and Information Technology has projected industrial output to increase 11 percent this year after rising 13.9 percent in 2011, citing uncertainties in the global economy.
Industrial production rose 11.9 percent in March from a year earlier, after rising 11.4 percent in the January-February period, data from the National Bureau of Statistics showed today. A Bloomberg News economist survey had a median estimate of 11.6 percent.
"This is actually a decent IP print," Glenn Levine at Moody's Analytics wrote in a note. Moody's Analytics forecast a 12 percent increase.
The industrial output data is closely correlated with gross domestic product growth in China, a mainly manufacturing-driven economy. The better-than-expected data followed the strong official Purchasing Managers' Index numbers.
The PMI earlier released by the China Federation of Logistics and Purchasing hit 53.1 in March from 51 in February. This survey is targeted at big, state-owned enterprises that are tied to domestic demand.
This is despite a separate PMI by HSBC, which is skewed towards smaller, private, and export-oriented firms, that fell to 48.3 in March, down from 49.6 in February.
"The uptick (in industrial output) was foreshadowed by some good official PMI numbers in the opening months of 2012 as China's large, state-owned factories are still expanding, helped by the government's various public infrastructure projects," Levine said, adding fixed-asset investment figures also released today showed that railway construction is rising again.
He said that China's solid consumer sector, alongside a strong lift in state-led investment, will be enough to keep China's industrial sector ticking over a solid clip through 2012.
The Ministry of Industry and Information Technology has projected industrial output to increase 11 percent this year after rising 13.9 percent in 2011, citing uncertainties in the global economy.
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