Production expanded by 9.3 per cent in April compared to a year earlier, data revealed yesterday, faster than March’s 8.9 per cent rise – yet growth of 9.5 per cent had been expected. In April last year, Chinese industrial growth fell below 10 per cent, and higher levels have since seemed out of reach.
Growth in retail sales was also modest, moving from 12.4 per cent to 12.5 per cent on the year, with 12.6 per cent expected.
Societe Generale analyst Wei Yao suggested that the Chinese economy would require structural reform. “Overall, the data pointed to slightly better economic growth in quarter two, but still far from encouraging”, he added.