China’s factory output jumps as Beijing bets on industry to drive recovery

Stay informed with free updates

China’s industrial production rose more than expected last month, but retail sales grew more slowly in a sign that weak consumer sentiment was weighing on a recovery in the world’s second-largest economy.

Industrial production grew 6.7 per cent per cent year on year in April, official data from the National Bureau of Statistics showed on Friday, beating a forecast of 5.5 per cent from economists polled by Bloomberg and 4.5 per cent growth in March.

However, retail sales grew only 2.3 per cent from a year earlier, compared with an analyst forecast of 3.7 per cent and 3.1 per cent growth in March, signalling that authorities would need to step up efforts to stimulate domestic consumption.

China’s economy has shown mixed signs of a recovery in recent months, with exports returning to growth in April but domestic sentiment struggling under a deep slump in the property sector.

The People’s Bank of China plans to begin selling Rmb1tn ($140bn) of ultra-long bonds on Friday, the government said, in a bid to “give full play to the crucial role of government investment in shoring up economic growth”.

China’s cabinet, the State Council, also announced it would hold a meeting on Friday afternoon to address problems in the housing sector, which has continued to suffer a yearlong slowdown despite numerous initiatives to shore up debt-stricken property developers.

In other data, the NBS said fixed-asset investment grew 4.2 per cent year on year in April, trailing a Bloomberg analysts’ poll forecast of 4.6 per cent growth and a 4.5 per cent increase in March. Property prices in so-called first-tier cities fell by 2.5 per cent year on year.

China’s benchmark CSI 300 stock index edged down 0.3 per cent while the Hang Seng Mainland Properties index, a basket of Hong Kong-listed developers, shed 0.4 per cent after rising as much as 3.1 per cent in early trading.

Also Read More: World News | Entertainment News | Celeb News

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Jrue Holiday, $70M Star Will Be Trade Pieces Down The Line: NBA Analyst

Getty Grayson Allen driving past Mike Conley during an NBA game. A…

Fitzroy wine bar Enoteca Zingara now open

You’ll find delicious things on bread, wine at retail prices and recipes…

Turkey’s opposition set to hold power in major cities, partial results show | Elections News

Partial results in local elections show CHP candidates ahead of their AK…

Severe weather, tornadoes destroy nearly 50 homes in Kalamazoo County, Michigan

Nearly 50 homes were destroyed and dozens more were seriously damaged during…