China's factory output posts first increase for 2020 as economy emerges from lockdown, but consumption still weak

After months of lockdowns, China is slowly reopening its economy as the coronavirus outbreak on the mainland has come under control.

Reuters May 15, 2020 08:33:26 IST
China's factory output posts first increase for 2020 as economy emerges from lockdown, but consumption still weak

Beijing: China’s industrial output rose 3.9 percent in April from a year earlier, data showed on Friday, expanding for the first time this year as the world’s second-largest economy slowly emerged from its coronavirus lockdown.

That was faster than the 1.5 percent increase forecast in a Reuters poll on analysts and followed a 1.1 percent fall in March.

After months of lockdowns, China is slowly reopening its economy as the coronavirus outbreak on the mainland has come under control.

However, it continues to face major challenges in recovery as the pandemic has now swept the globe, affecting other major economies and trading partners.

The National Bureau of Statistics said China’s economy was recovering but still faced many challenges as the coronavirus spread globally.

Chinas factory output posts first increase for 2020 as economy emerges from lockdown but consumption still weak

Representational image of Chinese factory. Reuters

China’s economy contracted 6.8 percent in the first quarter from a year earlier, shrinking for the first time since at least 1992.

Producer prices saw their sharpest fall in four years earlier this week, showing weakening industrial demand.

Many Chinese factories are grappling with slashed or cancelled overseas orders after reopening as global demand stays tepid.

While the country’s exports saw an unexpected rebound in April, driven in part by demand for medical supplies, imports saw a sharper-than-expected dive, signalling weak domestic demand.

Manufacturing surveys in April showed a collapse in export orders.

China’s central bank said on Sunday that it would step up policy support for the economy, which would include help for small and medium-sized enterprises.

Consumption remained weak with retail sales falling 7.5 percent in April, faster than a forecast 7.0 percent decline.

Sales tumbled in the first three months of the year as shops, restaurants and other places with crowds closed across the country.

Fixed asset investment fell 10.3 percent in January-April, compared with a forecast 10.0 percent fall and a 16.1 percent decline in January-March.

Private sector fixed-asset investment, which accounts for 60 percent of total investment, fell 13.3 percent in January-April, compared with an 18.8 percent decline in the first three months of the year.

Updated Date:

also read

COVID-19: Amid rising cases, Delhi makes mask mandatory again; Rs 500 fine on violators
India

COVID-19: Amid rising cases, Delhi makes mask mandatory again; Rs 500 fine on violators

The fine under this provision of the notification will not be applicable to persons travelling together in private four-wheeler vehicles

India adds 16,047 new COVID-19 cases, 54 deaths in last 24 hours; positivity rate jumps to 4.94%
India

India adds 16,047 new COVID-19 cases, 54 deaths in last 24 hours; positivity rate jumps to 4.94%

Delhi continues to see a rise in new COVID-19 cases. The national capital has reported 2,495 new infections in the last 24 hours. The positivity rate stood at 15.41 per cent

COVID-19: Over 80,000 tourists trapped in 'China's Hawaii' after authorities impose travel curbs
World

COVID-19: Over 80,000 tourists trapped in 'China's Hawaii' after authorities impose travel curbs

Tourism hotspot Sanya is a city of more than a million people on the southern island of Hainan, where 483 Covid cases were reported Sunday. All flights out of the city were cancelled over the weekend, with authorities also halting train ticket sales