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China's factory output grows in April despite tariffs

2025-05-19 HKT 11:56
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China's industrial output expanded faster than expected in April despite the impact of US tariffs, highlighting the resilience of the economy while fuelling optimism over the growth outlook following the easing of trade tensions between Beijing and Washington, officials said.

Data released by the National Bureau of Statistics (NBS) on Monday showed that the country's industrial output grew 6.1 percent year-on-year, stronger than analysts' expectations of a 5.2 percent rise, while slowing from the 7.7 percent jump in March.

The figures indicate that the impact of US tariffs was not particularly pronounced.

Growth of retail sales, a key gauge of consumption, slowed in April, rising by 5.1 percent from a year earlier, missing analysts' estimates of 5.5 percent growth. This compared with 5.9 percent growth the previous month.

Growth in fixed-asset investment for the first four months of this year, including property and infrastructure investment, also slowed slightly, expanding by 4 percent following a rise of 4.2 percent from January to March.

But the urban jobless rate improved as it fell to 5.1 percent in April from 5.2 percent in March, at a time when the Sino-US trade war led economists to warn about substantial job losses in the country.

"Generally speaking, despite increasing impact of external shocks in April, with the synergy of macro policies, major indicators witnessed steady and fast growth, and the national economy maintained the new and positive development momentum," said NBS spokesman Fu Linghui at a press briefing in Beijing.

"However, we should be aware that there are still many unstable and uncertain factors in the external environment, and the foundation for sustained economic recovery needs to be further consolidated.

"At the next stage, we must move faster to create a new pattern of development, and coordinate domestic economic work and endeavours in the international economic and trade field."

Separately, Fu noted that foreign trade has been able to withstand increased external shocks, with exports of mechanical and electrical machinery rapidly growing.

He added that China will continue to expand demand and optimise the industrial structure.

Earlier this month, Beijing announced a package of stimulus measures, including lowering borrowing costs and a major liquidity injection, to prop up the economy and stabilise businesses and employment, before a trade agreement was reached by China and the US following talks in Geneva.

The deal, which included rolling back most of the tariffs they imposed on each other for 90 days, marked a significant step for the world's two largest economies to de-escalate trade tensions.

That also prompted a slew of global investment banks to raise their forecasts for China’s economic growth this year while paring back expectations for more proactive stimulus, as Beijing strives to reach its growth target of around 5 percent this year.

China's factory output grows in April despite tariffs