Chinese retail sales picked up in May but industrial production growth slowed, official data showed Monday, suggesting the recovery in the world’s second-largest economy remains uneven, news reports said.
MIDF Research, in its Economic Brief today (June 18), said China’s industrial production expanded by +5.6%yoy in May-24, slower than previous month’s +6.7% yoy and missed market expectations of +6.0%yoy.
Manufacturing output rose by +6.0% yoy while hi-tech manufacturing output advanced by +10.0%yoy. Mining & quarrying output growth rate quickened to +3.6%yoy, the steepest rise in 4-month. Production & distribution of electricity, gas & water increased by +4.3%yoy.
On monthly sequence, IPI up by +0.3%mom (Apr-24: +1.0%mom).
Another data release showed that domestic demand strengthened as retail sales growth rate improved to 3-month high at +3.7%yoy, surpassing market expectations of +3.0%yoy.
The retail trade increased by +0.5%mom, the largest monthly gain in 7-month.
The steady expansion of retail trade among others supported by the improving labour market in China.
Latest jobless rate reported at 5.0% in May-24, maintaining the 5-month low recorded in the previous month.
Judging from Caixin Services PMI, the 10-month high optimism level in the services sector indicate continuous betterment of domestic demand going into 2HCY24.
Similarly, Caixin Manufacturing PMI which registered at 23-month high in May-24 signalled further expansion of industrial as well as external trade activities in China, MIDF said.
