Beijing: China’s industrial output expanded at a slightly slower pace in May while big ticket investment growth eased.
Industrial production, which measures output at the country’s factories and mines, rose 9.2 per cent year-on-year in May, marginally weaker than the 9.3 per cent increase in April, the National Bureau of Statistics said.
But the May figure matched the median 9.2 per cent gain predicted in a survey of 14 economists by Dow Jones Newswires.
Fixed asset investment — a key measure of government spending — increased 20.4 per cent from January through May compared to the same period last year, the bureau said, slightly weaker than the figure of 20.6 per cent covering the first four months of the year.
The figures come amid growing concern over the outlook for China’s economy, which grew 7.8 per cent in 2012, its worst performance in 13 years.
“The macro data for May have confirmed that the economy is stuck in stagnant growth again after quite a brief rebound,” Ren Xianfang, senior economist at IHS Global Insight, wrote in a commentary.
“Demand-side indicators are unanimously weak, with extremely weak exports growth and (a) continued slide of fixed-asset investment growth.”
On Saturday, China reported a sharp slowdown in exports in May from April, while imports unexpectedly dropped, amid weakness in the domestic economy and sluggish demand overseas.
In April, the government announced a surprisingly weak growth in gross domestic product (GDP) of 7.7 per cent for the first quarter. That figure surprised analysts who had expected that growth was likely to accelerate in 2013 after showing strength at the end of last year.
Besides, the trade data for May, other recent indicators have raised alarm bells. A survey by British banking giant HSBC showed China’s manufacturing activity measured 49.2 in May, an eight-month low.
The government’s own survey of manufacturing activity for May, however, was more optimistic, unexpectedly rebounding to 50.8 from 50.6 the month before, according to the NBS.
The private and government purchasing managers’ index (PMI) surveys of manufacturing are widely watched indicators of the health of the Chinese economy. Readings above 50 indicate expansion while anything below points to contraction.
In one potential bright spot, the NBS also announced Sunday that retail sales, China’s main gauge of consumer spending, managed a marginal acceleration in May.
Retail sales rose 12.9 percent year-on year in May, the NBS said,, slightly higher than April’s 12.8 percent gain.
China’s leaders have repeatedly vowed to retool the country’s economic model to emphasise consumer demand as the key growth driver rather than investment and exports.
The government’s economic growth target for 2013 is 7.5 per cent, the same as last year’s.
