Officials are warning of new problems affecting China’s post-COVID recovery after factory output growth slowed in April, while retail sales expectations were significantly off target, reported Reuters.
Although China has demonstrated an impressive level of recovery so far, global supply-chain issues and rising materials costs have led to a slowdown in production, even though export demand remains high. Retail sales rose in April by 17.7%, missing, by some margin, the forecasted growth of 24.9% and falling from the 34.2% surge in March. Factory output did meet projections, but only grew 9.8% compared to 14.1% in the previous month.
“The foundations for the domestic economic recovery are not yet secure,” stated Fu Linghui, an NBS spokesman. “For companies as a whole, price increases are conducive to the improvement of corporate efficiency, but the pressure on downstream industries needs to be paid attention to.”