After record expansion in the January quarter, growth in April, including retail sales, slowed, showing an uneven recovery.
The Chinese economy has shrunk in April from the previous month’s jump, as factory production slowed and retail sales lost analysts ’expectations, indicating greater pressure on the recovery in the consumption.
Industrial production grew by 9.8% in April compared to a year ago, slower than the rise of 14.1% in March, according to data from the National Statistics Office (NBS) on Monday. , but coinciding with a consensus forecast by analysts in a Reuters poll.
China’s gross domestic product (GDP) rose a record 18.3% in the first quarter and many economists expect growth to exceed 8% this year.
Some warn that continued disruptions in the global supply chain and higher comparative bases will affect momentum in the coming quarters.
The Chinese economy showed steady improvement in April, but new problems are also emerging, Fu Linghui, a spokesman for the NBS, said at a briefing in Beijing on Monday. “The foundations for internal economic recovery are not yet secure,” he said.
China’s growth figures during the first months of the year were bolstered by the low comparison with an economy paralyzed by COVID-19 in the same period last year.
Retail sales rose 17.7 percent year-over-year in April, much lower than a 24.9 percent increase expected by analysts, down from the 34.2 percent jump seen in March.
Consumption should maintain a steady recovery, Fu said.
Growth in home appliance sales fell especially sharply in April over the previous month, from 38.9% growth in March to 6.1%, NBS data showed.
Investment in fixed assets, or investment in factories and machinery, increased by 19.9% in the first four months compared to the same period of the previous year, compared to a forecast increase of 19%, slowing down from 25.6% in January-March.
Investment in fixed assets in the private sector, which accounts for about 60 percent of total investment, rose 21 percent between January and April, compared to a jump of 26 percent during the first three months.
Asian stock markets mixed on Monday after the data was released.
The economic recovery is uneven
A top decision-making body of the ruling Communist Party said last month the country would encourage the recovery of manufacturing and private investment as quickly as possible.
The Politburo meeting chaired by President Xi Jinping also warned that China’s economic recovery remained uneven and that its base was not yet solid.
Exports accelerated unexpectedly in April and import growth peaked at ten years, thanks to strong demand for Chinese products amid a rapid US economic recovery and stagnant factory production in others. countries.
However, factory activity was also slow in April, as bottlenecks in supply and rising costs weighed on production.
Authorities have promised a gradual reduction in monetary and fiscal stimulus boosted to the economy last year, with no sharp changes in policy. Recent data show a marked slowdown in credit in April, suggesting that output could materialize at a faster-than-expected pace. The central bank injected medium-term cash into the financial system on Monday to match the outstanding amount, a move largely expected by analysts.