China’s industrial output expanded faster than expected in April while consumption disappointed, highlighting the challenges facing the world’s second-largest economy despite a quick de-escalation of trade tensions with the U.S.
Industrial output climbed 6.1% on year in April, slowing from the prior month but far exceeding the median estimate in a Bloomberg survey of analysts. Retail sales growth, a key gauge of consumption, also weakened from March to 5.1%, according to figures published by the National Bureau of Statistics on Monday, below economists’ projection.
Despite the resilience of factories, weaker consumption for April points to the need for more supportive policies as economists warn of complacency after a 90-day pause on tariffs. China’s prolonged property crisis, deflationary pressure and worries about unemployment are weighing on confidence among households.
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