Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Business

11,661.8575.5
Stock Analysis, IPO, Mutual Funds, Bonds & More

China’s industrial output growth lowest in over 17 years

The industrial output data reflects an escalation of US-China trade tensions.

, ET Bureau|
Jun 24, 2019, 01.09 PM IST
0Comments
NEW DELHI: The world’s second-largest economy is struggling with the renewed US-China trade tensions. In May this year, China’s industrial output growth fell to its lowest level in more than 17 years.

According to data released by the National Bureau of Statistics of China, in May this year, the added value of China's above-scale industries increased by 5% year-on-year, the lowest level since February 2002, down from 5.4% in the previous month. The May data is also significantly lower than the 5.5% forecast by economists surveyed by Reuters.

In May, some aspects of the Chinese economy did show some vitality. In May, China’s total retail sales growth rebounded strongly, from 7.2% in April to 8.6%. April was the worst month since 2003. Economists surveyed by Reuters expect total retail sales to increase by only 8.1% in May.

The industrial output data reflects an escalation of US-China trade tensions. In mid-May, US President Donald Trump raised the tariff on $200 billion in Chinese exports to the United States to 25%. Retaliation by Beijing has imposed tariffs on about $60 billion of US exports to China.

Although the Chinese economy grew faster than expected in the first quarter of this year compared to the last three months of 2018, analysts said that a large part of this was due to stimulus measures and ease of credit flows. Recent data points, including credit growth, were worse than expected.

In recent weeks, Beijing has strengthened its support measures to support economic development, such as encouraging local governments to use special bonds in major projects.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service