The key facts

  • China's industrial production in September rose 5.5% year-on-year against expectations of 5.4%
  • Retail sales increased 1.1% versus a forecast of 0.5%, to 4.24 trillion yuan
  • Production of new energy vehicles grew 16.9% to 1.87 million units, while overall car production fell 5.7%

September Data Beat Expectations

Industrial production and retail sales in China in September grew more than expected, according to official data published on Monday. According to the National Bureau of Statistics (NBS), industrial production increased 5.5% year-on-year, exceeding market expectations of 5.4% and accelerating from 5.2% in August. On a monthly basis, production rose 0.61%, and growth for the first nine months of the year was 5.3%.

Structure of Industrial Growth

In September, manufacturing increased output by 6% year-on-year, mining by 1.3%, and the production and supply of electricity, heat, gas and water by 5.6%. The fastest-growing sectors were the output of computers, communications and other electronic equipment (16.4%) and special-purpose machinery (12.1%). Automobile production grew 6.7%. At the same time, the output of new energy vehicles increased 16.9% to 1.87 million units, while overall car production fell 5.7% to 3.06 million units.

Retail Sales Accelerated

Retail sales in September rose 1.1% year-on-year, exceeding expectations of 0.5% and accelerating from 0.4% in August. Sales amounted to 4.24 trillion yuan, up 0.35% on a monthly basis. Excluding automobiles, sales grew 3.9% to 3.88 trillion yuan (about $580 billion). From January to September, retail sales reached 37 trillion yuan, 1.1% more than in the same period last year: sales of goods increased 1%, while catering revenue rose 2.4%.