China’s industrial and retail sectors showed signs of slowing in April, as ongoing trade tensions with the United States continued to cast a shadow over the world’s second-largest economy, as per Al Jazeera.
However, official figures released Monday suggest that the economy remains more resilient than many analysts had predicted.
Industrial output grew by 6.1 percent year-on-year in April, down from 7.7 percent in March, according to data from China’s National Bureau of Statistics (NBS). While the growth rate slowed compared to the previous month, it outpaced market expectations. Economists surveyed by Reuters and Bloomberg had forecast growth of 5.5 percent and 5.7 percent, respectively.
Retail sales also showed signs of cooling, rising 5.1 percent year-on-year, compared with 5.9 percent in March. The result came in below analysts’ projections and signals possible consumer caution amid economic uncertainty.
Fixed-asset investment — a key gauge of long-term economic activity including spending on property and infrastructure — rose 4 percent year-on-year.
Meanwhile, the urban unemployment rate ticked down slightly from 5.2 percent to 5.1 percent, offering a small sign of labor market improvement.
The latest figures arrive shortly after the U.S. and China reached a temporary agreement to dramatically reduce tariffs on each other’s goods. The deal, brokered in Geneva, saw the U.S. cut its tariff rate on Chinese imports from 145 percent to 30 percent, while China reduced its rate on U.S. goods from 125 percent to 10 percent. The agreement is expected to last 90 days.
Despite the partial easing of trade restrictions, the broader outlook remains uncertain. China’s statistics bureau acknowledged that the country’s economy had benefited from “new and positive development momentum,” attributing growth to recent policy measures from Beijing.
“However, we should be aware that there are still many unstable and uncertain factors in the external environment,” the NBS said in a statement. “The foundation for sustained economic recovery needs to be further consolidated.”
