November industrial production up 6.2% year-over-year vs 5.7% expected
China released industrial growth data on Saturday and the numbers may help to ease fears of a slowdown. The result was better than all but one of the 37 estimates in the Bloomberg economist survey.
There have been rumours of an RRR cut from the PBOC this month but nothing in the data is screaming that it needs to come immediately.
The industrial production number is an improvement from the 5.6% y/y pace in October and could help to stabilize risk sentiment when markets re-open after a brutal finish on Friday.
Much of the strength came from a 16% y/y jump in automotive production, compared to 4.9% in October.
The Chinese stats bureau warned, however, that much of the strength came from base year effects.
By industry:
- Manufacturing output +7.2% y/y vs 6.7% prior
- Mining output +0.3% y/y vs +0.4% prior
- Utilities +2.2% y/y vs -0.3% prior
