China industrial output picks up in April, show offical data

BEIJING

Chinese industrial production picked up in April but consumption slowed, official figures showed on May 17, as woes in the property sector and elsewhere continued to weigh on economic recovery.

Industrial output rose 6.7 percent on-year last month, according to the National Bureau of Statistics, building on a 4.5 percent increase in March.

The figure was higher than the 5.5 percent tipped in a Bloomberg forecast of economists.

However, retail sales growth, China's key gauge of consumer spending, continued to slow, expanding just 2.3 percent, down from 3.1 percent in March and lower than forecasts.

The sales figures are "depressed by low consumer prices and further contraction in housing sales," said Dan Wang, chief economist at Hang Seng Bank China.

"Business and consumer confidence will remain low without policy support directly targeting family income and durable goods," she added.

China's economy is charting an uneven economic recovery, with a heavily indebted property market, sluggish consumption and high unemployment among the challenges facing policymakers.

The central government has recently signalled plans to step up support, announcing earlier this week the sale of an initial batch of long-term sovereign bonds, a move expected to boost annual growth.

Reacting to the latest figures, Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management said in a note that "the strong manufacturing sector is likely driven by external demand, evidenced by the growth of export volume."