China’s economic recovery has slowed in April following the Q1 boom Business and Economic News

After a record growth in the January quarter, growth in April, including retail sales, slowed and had an uneven recovery.

The Chinese economy slowed in April with a jump seen in the previous month as factory production slowed and retail sales lost analysts ’expectations, indicating greater pressure on the recovery in consumption.

Industrial production grew by 9.8% in April from a year ago, slower than 14.1 per cent in March, data from the National Statistics Office (NBS) showed on Monday but in line with a forecast agreed by Reuters survey analysts.

China’s gross domestic product (GDP) rose 18.3% in the first quarter and many economists expect growth to exceed 8% this year.

Some have warned that continued supply chain disruptions and greater comparative bases will have a boost in the coming quarters.

China’s economy showed steady improvement in April, but new problems are also emerging, NBS spokesman Fu Linghui said in a news release in Beijing on Monday. “The foundations for the internal economic recovery are not yet secure,” he said.

In the first months of the year, China’s growth figures increased as COVID-19 stagnated in the same period of the previous year compared to the economy that COVID-19 stopped.

Retail sales rose 17.7% year-on-year in April, a much weaker-than-expected 24.9 percent rise from analysts and a 34.2 percent jump seen in March.

Consumption should maintain a steady recovery, Fu said.

Growth in home appliance sales fell particularly sharply in April from the previous month, falling from 38.9% year-on-year in March to 6.1 percent, according to NBS data.

Investment in fixed assets or plant and machinery investment increased by 19.9 per cent in the first four months compared to the same period a year earlier, an increase of 19% on the forecast, from 25.6% in January-March.

Private sector investment in fixed assets, which accounted for approximately 60% of total investment, rose by 21 per cent in January-April compared to a 26% jump in the first three months.

Asian stock markets were mixed after data was released on Monday.

Uneven economic recovery

A top decision-making body of the ruling Communist Party said last month that the country would encourage private manufacturing and investment to recover as soon as possible.

The Politburo meeting chaired by President Xi Jinping warned that China’s economic recovery was uneven and that its base was not yet strong.

Exports accelerated unexpectedly in April and import growth was the 10-year high, with strong demand for Chinese goods halting production in the U.S. economic boom and factories in other countries.

However, plant activity was also slow in April as supply caps and cost increases weighed on production.

Authorities pledged to make a gradual reduction in economic and fiscal stimulus to the economy last year, which did not turn much around in politics. The latest data show a significant slowdown in credit in April, suggesting that the outflow is taking place faster than expected. The central bank injected medium-term money into the financial system on Monday to match the amount it owed, a move largely expected by analysts.