China's economy is weak, going to do this work soon | Jagran Business- Watch Video

15 Jun, 2023 Author: Saumya Jaiswar

May was a downturn in China's economy as both industrial output and retail sales growth fell short of expectations. This raised concerns that Beijing would need to do more to support the wobbly post-pandemic recovery.The second quarter saw a slowdown in the economic recovery that was observed earlier this year, leading China's central bank to lower some key interest rates this week for the first time in almost a year, with anticipation of further reductions.

The National Bureau of Statistics (NBS) said on Thursday that industrial output climbed 3.5% in May compared to a year earlier, slipping from the 5.6% gain in April and falling just short of the 3.6% increase predicted by economists in a Reuters poll as manufacturers battle sluggish demand at home and overseas.

Retail sales - a key gauge of consumer confidence - rose 12.7%, missing forecasts of 13.6% growth and slowing from April's 18.4%.

Data from a variety of sources, including factory surveys, trade, loan growth, and home sales, have indicated signals of weakening in the second-largest economy in the world. According to NBS estimates, daily coal production decreased from April through May, while crude steel output continued its year-over-year and month-over-month declines.