China’s industrial output grew by 6.7% year-on-year in April, a significant increase from the 4.5% growth recorded in March. This robust growth, as reported by the National Bureau of Statistics (NBS) on Friday, exceeded analysts’ expectations of a 5.5% rise, indicating a strengthening recovery in the manufacturing sector.
In April 2024, China’s industrial output surged by 6.7% year-on-year, a significant increase from the 4.5% growth recorded in March. This robust performance surpassed the 5.5% growth anticipated by analysts in a Reuters poll. The National Bureau of Statistics (NBS) noted that the acceleration indicates a gathering pace in the manufacturing sector’s recovery, bolstered by improving demand and production activities.
Contrasting the industrial boom, retail sales—a critical gauge of consumer spending—rose by a modest 2.3% in April, down from a 3.1% increase in March. This figure fell short of the 3.8% growth forecasted by analysts, reflecting ongoing challenges in boosting domestic consumption despite various government efforts to stimulate spending.
Fixed asset investment in China expanded by 4.2% in the first four months of 2024 compared to the same period in 2023. This growth was slightly below the expected 4.6% rise and marked a deceleration from the 4.5% increase observed in the first three months of the year. This slowdown indicates cautious investment sentiment amid broader economic uncertainties.
Earlier economic data for April painted a complex picture. While China saw a return to growth in exports and imports following a contraction in March, consumer prices continued to rise for the third consecutive month. On the financial front, new bank lending dropped more than expected from the previous month, and broad credit growth hit a record low, suggesting potential strains in the financial system and the need for further policy interventions.
The Chinese government has set an ambitious economic growth target of around 5% for 2024. The economy expanded by a faster-than-expected 5.3% in the first quarter, reflecting resilience in the face of global economic challenges. However, the mixed data from April underscore the complexity of sustaining this growth momentum.
In response to economic pressures, China commenced the issuance of 1 trillion yuan ($138.17 billion) in ultra-long special treasury bonds with tenors ranging from 20 to 50 years. These funds are intended to stimulate key sectors of the economy, providing much-needed support to achieve the government’s growth objectives.
The property sector, accounting for a significant portion of China’s economy, continued to struggle. Property investment fell by 9.8% year-on-year in the January-April period, following a 9.5% decline in the first quarter. This sector has been under pressure due to a regulatory crackdown aimed at curbing excessive leverage and speculation.
To mitigate these issues, local governments in cities like Hangzhou and Xi’an have recently lifted home purchase curbs, aiming to rejuvenate the housing market and boost sales.
The first newspaper in India, Hicky’s Bengal Gazette, was founded by James Augustus Hicky in…
Anousheh Ansari is an influential Iranian-American engineer, entrepreneur, and space traveler. Born on September 12,…
October, the tenth month of the year, is a month packed with globally significant days,…
Earth is set to welcome a temporary "mini-moon" in the form of a small asteroid…
On the occasion of World Tourism Day, the Ministry of Tourism launched "Paryatan Mitra" and…
NASA (National Aeronautics and Space Administration) astronaut and Indian Origin Sunita Williams has officially taken…