After a record growth in the January quarter, growth in April, combined with retail sales, declined, showing inconsistent recovery.
China’s economy has begun to decline in April since a jump last month when industrial sales fell and retailers exceeded expectations of experts, indicating a temporary pressure on consumption.
Industrial growth grew 9.8% in April since last year, slower than the 14.1% increase in March, National Bureau of Statistics (NBS) data showed Monday but is similar to what Reuters analysts did.
China’s gross domestic product (GDP) has grown by 18.3% in the first quarter and many economists expect growth to increase by 8% this year.
Some warn that continuing global corporate turmoil and massive speculation will reduce power in the near future.
China’s economy is showing signs of change in April but other problems are also emerging, said Fu Linghui, an NBS spokesman, at a press conference in Beijing on Monday. “The foundation for domestic recovery has not yet been established,” he said.
China’s significant growth in the first months of the year was boosted by a relatively small comparison with the weakening economy of COVID-19 in the same period last year.
Sales rose 17.7 per cent year-on-year in April, weaker than the 24.9% expected by experts and a 34.2% decline observed in March.
Consumption should remain safe, says Fu.
Growth in household goods sales fell sharply in April since last month, down 38.9% annual growth in March to 6.1 percent, NBS data showed.
Establishment of stable assets, or sales in factories and machinery, rose 19.9 per cent in the first four months from the same period last year, as opposed to the 19% increase, the lowest since January-March up 25.6%.
The fixed-income business, which accounts for about 60% of total revenue, rose by 21% in January-April, compared to the 26% jump in the first three months.
Asian regional markets were mixed Monday after the data was released.
Economic restructuring was not the same
The ruling Communist Party (AU) says last month the country will urge manufacturers and financial institutions to restore as soon as possible.
The Politburo summit, chaired by President Xi Jinping, also warned that China’s economic recovery was not the same as its foundations.
Exports grew unexpectedly in April and exports grew to 10 years, due to the high demand for Chinese goods as the US economy expanded and hampered industrialization in other countries.
However, April has also seen factory operations slow down due to restrictions on availability and high cost of manufacturing.
Officials have promised a gradual return on investment in the past year, with no change in policy. Recent data shows a slight drop in debt in April, suggesting that the exit may be faster than expected. The central bank put up its mid-term budget on Monday to match the amount of money that should fall, an idea that analysts are investigating.