China’s factory output surges as government bets on industry to boost recovery

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China’s industrial production beat expectations last month, but retail sales growth slowed and there are signs that weak consumer sentiment is weighing on the recovery of the world’s second-largest economy.

Industrial production rose 6.7% in April from a year earlier, according to official data released by the Office for National Statistics on Friday, beating economists’ estimates of 5.5% growth in a Bloomberg survey and 4.5% growth in March.

However, retail sales rose only 2.3% year-on-year compared to the 3.7% and 3.1% expected by analysts in March, reflecting the need for authorities to step up efforts to stimulate domestic consumption. It suggests.

China’s economy has shown mixed signs of recovery in recent months, with exports returning to growth in April, but domestic sentiment has struggled due to a deep downturn in the real estate sector.

The People’s Bank of China plans to start selling 1 trillion yuan ($140 billion) of super-long-term bonds on Friday, with the aim of “maximizing the important role of government investment in promoting economic growth.” announced.

China’s cabinet, the State Council, will also meet on Friday afternoon to address problems in the housing sector, which has languished for a year despite a number of initiatives to support debt-ridden property developers. announced that it would be held.

In other data, NBS said fixed asset investment rose 4.2% in April compared to the same month last year, lower than the 4.6% increase in a Bloomberg analyst survey and the 4.5% increase in March. Real estate prices in so-called first-class cities fell 2.5% from the previous year.

China’s benchmark CSI300 stock index fell 0.3%, while the Hang Seng Mainland Properties index, made up of Hong Kong-listed development companies, fell 0.4% after rising as much as 3.1% in early trading.