US and Chinese April industrial output figures released yesterday undershot expectations, confirming that global industrial activity continues to weaken alarmingly.
Six-month growth of Chinese industrial output reversed its March spike, confirming that the latter was driven by New Year timing and VAT cut anticipation effects rather than underlying acceleration. US output, meanwhile, posted a shock 0.5% month-on-month fall, with numbers for earlier months revised lower. The six-month decline in output in the US is now on a par with Euroland – see first chart.
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