China major industrial goods: Production growth rate yoy (monthly)
China-related data showed strength again last week
Toward the end of last week, China released production statistics and its credit impulse for March. Amidst easing of the COVID-19 situation, data showed solid recovery in production of industrial products the Chinese government has been fostering. Based on our inquiries, we expect a wave of recovery in April-May. Better demand for FA equipment and robots for capacity expansion looks likely to continue in H1 2020.
China’s statistics office released preliminary March production data on 17 April
In March, mobile phone handset production declined 9% (down 32% from the October-December average), auto output declined 43% (down 42%), semiconductor output rose 20% (up 12%), robot production rose 13% (up 3%), and production of metal-cutting machines declined 22% (up 18%). March production of several products thus bettered October-December averages, showing solid recovery. Expanding production of robots and machine tools may indicate capacity expansion investment has started again in some business areas.