Industrial production rose 5.2% YoY in August, accelerating from 4.5% in July, outperforming expectations for a smaller rebound (market: 4.8%, ING: 4.9%). Year-to-date growth remained at 5.3% YoY, with industrial production the clear standout amid weakness in consumption and investment.
Manufacturing continued to outperform the headline, growing 6.1% YoY, while equipment manufacturing and high-tech manufacturing rose 12.1% and 16.7%, respectively. In contrast, mining output fell to -1.4%, highlighting that the improvement was concentrated in manufacturing rather than broad-based across the industrial sector.
At the industry level, strength remained concentrated in higher-end manufacturing. In value-added terms, computer, communication and other electronic equipment manufacturing rose 17.2% YoY, followed by rail, ships, aerospace and other transport equipment at 13.4%, special equipment at 11.4%, and electrical machinery at 9.9%. Export delivery value also rose 11.1% YoY in nominal terms, consistent with strong merchandise export growth. This indicates that external demand remained an important support for production.
Product-level data showed a similar pattern. Lithium-ion battery production rose 57.2% YoY, industrial robots increased 34.6%, new energy vehicles rose 21.9%, and semiconductor integrated circuits increased 20.6%. However, solar cells, smartphones and microcomputer equipment recorded double-digit declines, highlighting continued divergence within the advanced manufacturing sector.
Traditional property and construction-linked industries remained weak. Cement (-11.7%), flat glass (-7.6%), and steel products (-5.5%) all contracted year on year.
Overall, industrial production regained momentum in August, but growth remains heavily reliant on high-tech manufacturing and exports.