Industrial production and retail sales in China grew at a pace below expectations in April, indicating that the economy has lost momentum at the start of the second quarter and increasing pressure on policymakers to support the "volatile" recovery following COVID-19.
Data released by the National Bureau of Statistics showed that industrial output grew by 5.6% in April compared to the previous year, up from 3.9% in March. However, this is far below the expected increase of 10.9% in a Reuters survey of analysts, even though it represents the fastest growth rate since September 2022.
Retail sales jumped 18.4% from 10.6% in March, marking its fastest increase since March 2021. Analysts had predicted a 21% growth in retail sales.
Other data released last week indicated a contraction in imports in April, along with a decline in bank loans below expectations, suggesting weak domestic demand, which intensifies pressure on policymakers to support economic recovery amidst global growth stagnation.
The Chinese central bank left interest rates unchanged yesterday, Monday, as expected, but markets are betting on more monetary easing measures in the coming months.
