CHINA TOPIX

11/02/2024 02:15:15 pm

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China Industrial Growth Rate Stays Steady, Investment Rate Declines

China reported 10 percent increase in retail sales for the month of May

(Photo : Getty Images/China Photos) Investment by private firms remained tepid at 3.9 percent.

China matched expectations for its industrial growth rate in May. However, the country saw the lowest increase for fixed-asset investment since 2000.

China's overall fixed-asset investment progress rate stood at 9.6 percent for the January to May period, below the market expectations of 10.5 percent while Investment by private firms also remained tepid at 3.9 percent.

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According to data released by the National Bureau of Statistics, Value added industrial output growth rate remains steady at 6 percent for the month of May. This rate is used as a rough proxy for economic growth as well. Meanwhile, non-rural fixed asset investment, a measure that provides an insight into construction activities, stood at 9.6 percent.

China reported a10 percent increase in retail sales for the month of May, down 0.1 percent from April. The country is currently struggling with overcapacity and slowing private investments.

These figures are likely to push the Chinese government to take effective measures to boost infrastructure. At 3.9 percent, private investment fell drastically below April's 5.2 percent.

Sheng Laiyun, a National Bureau of Statistics spokesman, said "The slowdown in private investment shows that economic growth momentum needs to be strengthened." However, he contended that the country's economic fundamentals are robust.

State-owned corporations also showed lower profits at 8.4 percent for the first four months of the year. The housing sales registered 53.4 percent gain on year-over-year basis for the period of January to May. The growth rate was at 61.4 percent for the first four months of the year.

China is working towards fixing issues such as excess industrial capacity and is also trying to restructure its state-owned-corporations.  

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