China Industrial Production Growth Weakens
June 14 2019 - 3:04AM
RTTF2
China's industrial output grew at a weaker pace in May as higher
tariffs imposed by the US administration dented production meant
for exports.
Data from the National Bureau of Statistics showed that
industrial production advanced 5 percent year-on-year in May, while
growth was expected to remain stable at 5.4 percent.
On the other hand, retail sales grew at a faster-than-expected
pace of 8.6 percent after rising 7.2 percent in the previous month.
Sales were forecast to advance 8.1 percent.
In the January to May period, fixed asset investment increased
only 5.6 percent from the previous year. Economists had forecast a
6.1 percent increase, as seen in the January to April period.
Similarly, property investment grew 11.2 percent in the five
months to May compared to an 11.9 percent rise in the January to
April period.
Disappointing batch of economic data reinforces the assessment
that growth will probably weaken a bit more this quarter, Franziska
Palmas, an economist at Capital Economics, said.
With consumer and business sentiment likely to sour further as
the trade war escalates, additional policy easing will be needed to
shore up growth, the economist noted.
However, with the scale of stimulus likely to remain smaller
than in previous downturns due to concerns about financial
stability, a strong recovery is not anticipated, Palmas added.
The International Monetary Fund cut China's growth forecast for
this year and next to 6.2 percent and 6 percent, respectively,
citing downside risks and high uncertainty surrounding trade
tensions, and said more policy easing may be needed if the conflict
escalates.
The unemployment rate remained stable at 5 percent in May, the
NBS reported.
According to the latest ManpowerGroup Employment Outlook,
released on Tuesday, hiring sentiment in China was relatively
stable compared to the previous quarter, but employers reported a
slight annual decrease in their plans to recruit staff.
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