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17/06/24
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Property Sector in China Stagnates, Factory Output Disappoints
May industrial output for China was lower than expected and the property sector slowing down showed no indications of easing despite policy support, adding pressure on Beijing to stimulate growth.
On Monday, the flurry of Chinese data was generally downbeat apart from retail sales that beat forecasts due to a boost by holidays.
The National Bureau of Statistics (NBS) data showed that in May, industrial output grew by 5.6% from the prior year, slowing from April’s pace of 6.7% in and lower than expectations for an increase of 6.0%.
Retail sales, a measure of consumption, rose 3.7% in May year on year, accelerating from April’s rise of 2.3% rise and marking the quickest growth since Feb. Analysts had expected an expansion of 3.0% due to a public holiday earlier in the month.
Goldman Sachs analysts said in a note activity data for May and their high-frequency trackers indicated there were still significant cross-sector divergences in the economy – strong manufacturing and exports activity, stable consumption, and property activity still being depressed.
In the first five months of this year, investment in fixed assets rose 4.0% from the same period the prior year, versus expectations for a rise of 4.2%. In the period from January to April, it grew 4.2%.
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