Latest news with #industrialoutput
Al Jazeera
19-05-2025
- Business
- Al Jazeera
China's industrial output, retail sales dip amid US trade tensions
China's industrial output and retail sales growth have slowed amid trade tensions with the United States. Factory output grew 6.1 percent year-on-year in April, down from a 7.7 percent rise in March, data released by China's National Bureau of Statistics showed on Monday. While down compared with the previous month, the figure beat analysts' expectations. Analysts polled by the Reuters and Bloomberg news agencies had respectively forecast growth of 5.5 percent and 5.7 percent. Retail sales grew 5.1 percent year-on-year, slower than the 5.9 percent growth recorded in March and below analysts' forecasts. Fixed-asset investment, which includes property and infrastructure investment, rose 4 percent. Unemployment fell slightly, from 5.2 percent to 5.1 percent. The latest data is likely to bolster hopes of China's economy remaining resilient in the face of US President Donald Trump's tariffs, after gross domestic product expanded a better-than-expected 5.4 percent in the January-March period. The National Bureau of Statistics said the economy maintained 'new and positive development momentum' due to Beijing's economic policies, despite the 'increasing impact of external shocks'. 'However, we should be aware that there are still many unstable and uncertain factors in external environment, and the foundation for sustained economic recovery needs to be further consolidated,' the statistics agency said in a statement. The economic figures are the first to be released since Washington and Beijing last week agreed to dramatically reduce tariffs on each other's goods for 90 days. Under the deal reached in Geneva, the US lowered its tariff on Chinese goods from 145 percent to 30 percent, while China slashed its rate from 125 percent to 10 percent. 'The risk is that tariffs remain in place for a long time, and eventually, we see production offshored,' Lynn Song, chief economist for Greater China at ING, said in a note on Monday. 'But amid tariff unpredictability, not just for China but across the world, few companies will be rushing to commit resources to set up offshore manufacturing facilities. This could mean that a decent portion of China's manufacturing and exports will be less impacted than originally feared.'
Japan Times
19-05-2025
- Business
- Japan Times
China consumption miss overshadows factory strength amid tariffs
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. The government, which set an ambitious economic growth target of about 5% for 2025, has previously made boosting domestic consumption a priority this year. Stay updated on the trade wars. Quality journalism is more crucial than ever. Help us get the story right. For a limited time, we're offering a discounted subscription plan. Unlimited access US$30 US$18 /mo FOREVER subscribe NOW "Rosy industrial production figures reflect only one part of the economy,' said Raymond Yeung, chief economist for Greater at Australia & New Zealand Banking Group. "But April retail sales figures show that people are not willing to spend. To achieve 5% growth, we still need consumption.' The urban jobless rate fell slightly to 5.1% in April, while growth in fixed-asset investment slowed to 4% in the first four months of the year. China's new home prices dropped at a faster pace in April. The offshore yuan held little changed after the data release. Yields on China's 10-year government bonds edged lower slightly to 1.67%. A gauge of Chinese stocks listed in Hong Kong pared early losses following the data. The snapshot of the economy offers the fullest look yet at how China coped with a drastic escalation in trade tensions with the U.S. While the two sides in May reached the truce in their tariff war, the uncertainty surrounding further negotiations toward a final deal could keep businesses cautious about expanding production or investing in new projects. Still, the surprise performance of industrial production provides further evidence that China was able to dodge a steep slowdown as it navigated the onset of U.S. President Donald Trump's trade war. Exports in April also rose more than forecast, as companies diverted goods to Southeast Asia and Europe to compensate for a plunge in shipments to the U.S. A few major international banks including Goldman Sachs Group upgraded their forecasts for China's 2025 growth last week, although their views remain below Beijing's target. Many economists are also expecting the de-escalation to buy the government more time before it needs to deploy more stimulus to prop up the economy. The agreement "between the U.S. and China could have reduced tariff uncertainties while domestic policymakers could further switch into a wait-and-see mode,' Citigroup economists including Xiangrong Yu wrote in a note last week. Morgan Stanley economists including Robin Xing have dialed back their expectations on a supplementary fiscal package to up to 1 trillion yuan ($139 billion) in the fourth quarter, from a previous forecast of as much as 1.5 trillion yuan in July-September. Consumer sentiment has remained fragile amid the property slump and concerns the trade war could cause layoffs in China's massive manufacturing and export sectors. In April, China's program to subsidize purchases of new consumer goods probably contributed to huge gains in sales of home appliances, telecommunications equipment and furniture. At the same time, car purchases — which account for nearly a 10th of total retail sales — grew less than 1% after an increase of 5.5% in March. "This indicates that while measures such as the trade-in policy indeed can help stabilize short term consumption, a more sustainable recovery of consumption may require an improvement in consumer sentiment,' said Lynn Song, ING's chief economist for greater China. That "requires a broader stabilization of asset prices and a recovery of wage growth,' he added.
South China Morning Post
19-05-2025
- Business
- South China Morning Post
China's manufacturing resilient in April despite US tariffs, but consumption softens
China's economy mostly remained resilient in April, despite feeling the effects of the astronomical tariffs in place before last week, when Washington and Beijing agreed to remove or pause most of the duties imposed as part of their tempestuous trade war. Advertisement With the new agreement providing a 90-day reprieve in the conflict, last month was the only period where the full force of the triple-digit tariffs could be observed in economic data – at least for now. China's industrial output grew by 6.1 per cent in April from a year earlier, compared to 7.7 per cent growth in March, according to data released by the National Bureau of Statistics on Monday, higher than the 5.21 per cent growth estimate from a poll of economists by financial data provider Wind. Retail sales also rose by 5.1 per cent in April, compared with the 5.9 per cent growth observed in March, falling short of Wind's 5.48 per cent estimate. At a meeting of the country's Politburo in late April – a Communist Party conclave which typically sets the tone for the country's economic work in the second quarter – the high-level political body vowed to 'resolutely focus on doing our business, steadfastly expand high-level opening up and focus on stabilising employment, businesses, markets, and expectations' in a statement. Advertisement The rhetoric was seen as affirmation of the need to shore up domestic consumption in an environment where the future of global trade is less than certain.
Yahoo
19-05-2025
- Business
- Yahoo
China's Factory Output Grows More Than Forecast Despite Tariffs
China's industrial output expanded faster than expected in April, highlighting the resilience of the world's second-largest economy and feeding optimism about growth following a quick de-escalation of trade tensions with the US. Goldman Sachs Chief China Economist Hui Shan and Credit Agricole Chief China Economist Xiaojia Zhi share their insights on the latest snapshot of China's economy.
Yahoo
19-05-2025
- Business
- Yahoo
China's Fossil Fuels Production Retreats From Record Levels
(Bloomberg) -- Chinese fossil fuels output fell in April from the record levels hit in the prior month, although natural gas, crude oil and coal all delivered increases compared to the previous year as the government continues to prioritize security of supply despite weaker prices. How a Highway Became San Francisco's Newest Park America, 'Nation of Porches' Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NJ Transit Train Engineers Strike, Disrupting Travel to NYC Gas output rose 8.1% year-on-year to 21.5 billion cubic meters, while crude oil increased 1.5% to 17.7 million tons, the statistics bureau said on Monday. Coal production rose 3.8% to 389 million tons, although that was 51 million tons less than March, offering a hint of relief for miners suffering from a slump in prices to four-year lows. Elsewhere in the energy sector, crude oil processing fell 1.4% as refining units were closed for seasonal maintenance. Maintenance also affected crude steel output, which flattened in April. Outright cuts to production are likely in the coming months as mills follow through on the government's pledge to ease China's glut. But aluminum output rose 4.2% — and hit a record on a daily basis — as smelters took advantage of falling feedstock costs. On the Wire China's industrial output expanded faster than expected in April, highlighting the resilience of the world's second-largest economy and feeding optimism about growth following a quick de-escalation of trade tensions with the US. China's home prices fell at a faster pace in April, signaling the property market slump remains a headache for policymakers as they fend off a tariff war with the US. A reclusive Chinese billionaire whose prescient gold trades turned into an eye-catching windfall has now become the country's biggest copper bull, amassing a bet worth nearly $1 billion in a market jolted by escalating competition between the US and China. A Pentagon blacklisting, US congressional scrutiny and a global trade war haven't been enough to stop the world's largest maker of electric-car batteries from completing the globe's biggest share sale so far this year. This Week's Diary (All times Beijing) Monday, May 19: China's home prices for April, 09:30 China industrial output for April, including steel & aluminum; coal, gas & power generation; and crude oil & refining, 10:00 Retail sales, fixed assets investment, property investment, residential sales, jobless rate World Gas Conference in Beijing, day 1 EARNINGS: CLP Tuesday, May 20: China sets monthly loan prime rates, 09:00 China's 3rd batch of April trade data, including country breakdowns for energy and commodities World Gas Conference in Beijing, day 2 Wednesday, May 21: LME Asia Metals Seminar in Hong Kong China tin conference hosted by Antaike in Anhui, Hefei, day 1 World Gas Conference in Beijing, day 3 China's April output data for base metals and oil products CCTD's weekly online briefing on Chinese coal, 15:00 CSIA's weekly polysilicon price assessment Thursday, May 22: Shanghai Futures Exchange Derivatives Forum, day 1 China tin conference hosted by Antaike in Anhui, Hefei, day 2 World Gas Conference in Beijing, day 4 CSIA's weekly solar wafer price assessment Friday, May 23: Shanghai Futures Exchange Derivatives Forum, day 2 World Gas Conference in Beijing, day 5 China's weekly iron ore port stockpiles Shanghai exchange weekly commodities inventory, ~15:30 --With assistance from Winnie Zhu, Kathy Chen, Katharine Gemmell and Sarah Chen. Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner ©2025 Bloomberg L.P.
