China’s industrial economy bounced back strongly in April after the first quarterly contraction in history, but retail and investment remained weak, as demand concerns persisted, reported the South China Morning Post.
Across the board, monthly data released on Friday was improved from March, with industrial production, retail sales, fixed asset investment all kicking on. However, with weak demand at home and abroad, China’s efforts to get the economy back to full speed are likely to remain slow, analysts have said.
Industrial production, a measurement of output in China’s manufacturing, mining and utilities sectors, grew by 3.9% from a year earlier, following a 1.1% contraction in March. This was much better than the median result of a Bloomberg poll of analysts, which predicted 1.5% growth.
In the first quarter, this vital part of the Chinese economy shrank by 8.4% compared to a year earlier. April’s improvement was led by a 5.0% growth in manufacturing from a year earlier, much improved on a 1.8% drop in March.