China’s Industrial Sector Rises 4.4% in May but Economy Still Struggles to Recover

China’s manufacturing production soared 4.4% year-on-year in May, but disappointed market expectation, according to National Bureau of Statistics reported on Monday, pointing out that the economy is struggling to normalize after the coronavirus crisis.

 

The market consensus was expected an industrial output to expand by 5% as China made a rebound gaining 3.9% in April, the first expansion since the coronavirus emerged in China late last year.

 

Among major industries, production expanded for metal products (3.6%), general equipment manufacturing (7.3%), food manufacturing (6.3%), automotive (12.2%), special equipment manufacturing (16.4%), chemical raw materials and products (3.9%), and power equipment (4%). Unlike a decline in agriculture (-0.5%), and power equipment (-0.2%).

 

China’s economy this year experienced the first contraction ever after the GDP plugned by 6.8% in the first quarter. The government earlier has decided to omit 2020 growth target due to an uncertain outlook over Covid-19 pandemic.

 

Retail sales and investment continued to contract. Retail sales slumped for a fourth straight month. Although the 2.8% decrease was smaller than the 7.5% drop in April, it was larger than the 2.0% fall tipped by analysts.