China’s industrial output recovers in May, decline in retail eases

Beijing, Jun. 15, (dpa-AFX/GNA) - China’s industrial production logged a mild recovery in May and retail sales fell less than expected with the gradual relaxation of pandemic-related restrictions, official data showed on Wednesday.

According to the National Bureau of Statistics, industrial production rose 0.7% on a yearly basis in May, reversing the 2.9%t fall in April.

Production was forecast to drop 0.7%. At the same time, the annual fall in retail sales slowed to 6.7% from 11.1% in April. Economists had forecast a 7.1% decrease for May.

During January to May, fixed asset investment gained 6.2% from the previous year, topping expectations of 6% increase. Meanwhile, property investment decreased 4%.

In May, the urban unemployment rate dropped to 5.9%, official data showed.

The virus situation remains a risk, Sheana Yue, an economist at Capital Economics, said.

Even if further lengthy citywide lockdowns like that in Shanghai are avoided, the zero-Covid strategy means that targeted lockdowns will remain commonplace, depressing consumer activity and spending.

Coupled with headwinds to external demand, this will mean that the recovery will be tepid, the economist noted.

GNA

China’s industrial output recovers in May, decline in retail eases

Beijing, Jun. 15, (dpa-AFX/GNA) - China’s industrial production logged a mild recovery in May and retail sales fell less than expected with the gradual relaxation of pandemic-related restrictions, official data showed on Wednesday.

According to the National Bureau of Statistics, industrial production rose 0.7% on a yearly basis in May, reversing the 2.9%t fall in April.

Production was forecast to drop 0.7%. At the same time, the annual fall in retail sales slowed to 6.7% from 11.1% in April. Economists had forecast a 7.1% decrease for May.

During January to May, fixed asset investment gained 6.2% from the previous year, topping expectations of 6% increase. Meanwhile, property investment decreased 4%.

In May, the urban unemployment rate dropped to 5.9%, official data showed.

The virus situation remains a risk, Sheana Yue, an economist at Capital Economics, said.

Even if further lengthy citywide lockdowns like that in Shanghai are avoided, the zero-Covid strategy means that targeted lockdowns will remain commonplace, depressing consumer activity and spending.

Coupled with headwinds to external demand, this will mean that the recovery will be tepid, the economist noted.

GNA