Official data released today, Thursday, shows that China's industrial production rose by 3.5% in May compared to the same period last year, which was slightly below expectations, as a slowdown in domestic and foreign demand increases pressure on policymakers to support a fragile economic recovery. Analysts surveyed by Reuters had predicted a growth decline in production to 3.6% from 5.6% in April.
Data from the National Bureau of Statistics indicated that retail sales, a key measure of consumption, jumped by 12.7% in May compared to the same month last year, slowing from an 18.4% increase in April. Analysts had expected a 13.6% increase.
Analysts warn that the readings of Chinese data from last month may be misleading when compared to the very weak performance last year when many cities were under strict lockdowns due to COVID. However, it is clear that the economic recovery in the first quarter has lost considerable momentum, prompting the central bank to lower some key interest rates this week. The May reading represents the slowest growth since February.
