China: High-tech sectors cushion broader slowdown – ING
According to ING’s Lynn Song, Chinese industrial production growth slowed more than expected in July but remains relatively resilient compared with other domestic indicators.
ING analyst Lynn Song reported that while Chinese industrial production growth slowed more than expected in July, it remains resilient compared to other domestic indicators. Manufacturing and high-tech sectors showed strong performance, particularly in electronics, rail, aerospace, robotics, and semiconductors. In contrast, traditional property and infrastructure-linked sectors like cement, steel, and flat glass continued to struggle, reflecting the ongoing property downturn.
Despite the slowdown, year-to-date industrial production growth reached 5.3% YoY, slightly lower than the 5.4% recorded in the first half but still resilient compared to other domestic activity indicators. High-tech manufacturing saw a notable acceleration to 16.9% YoY, up from 14.1% in June, underscoring the country's strategic focus on industrial upgrading and high-tech manufacturing.
Additionally, product-level data highlighted continued strength in new economy sectors, with industrial robots rising 30.2% YoY, new energy vehicles increasing by 29.9% YoY, and semiconductor integrated circuits growing by 20.7% YoY. However, traditional property and infrastructure-linked sectors continued to lag, with cement output falling by 11.6% YoY, steel products declining by 4.1% YoY, and flat glass decreasing by 3.6% YoY.
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