Chinese industrial production rose in April, marking its first gain this year.
But the service sector remains a worry, with shoppers choosing to stay home.
Julian Satterthwaite reports.
Chinese factories fire up again, but shoppers stay home
Chinese factories are grinding back into life.
New data Friday (May 15) showed industrial production up 3.9% in April on the year.
That’s the first time it’s gained in 2020, and much more than the 1.5% forecast by analysts.
The production of oil, coal, metals and electricity all rose as the factories fired up again.
But a statistics bureau spokeswoman sounded cautious: "Looking at the current situation, even though there is a narrowing decline in monthly comparisons, or certain figures are becoming positive or the trend of recovery is improving, it is still challenging to compensate for the severe impact of the pandemic earlier.” The service sector is now the bigger worry.
Retail sales fell 7.5% in April, faster than forecast.
The official unemployment rate rose to 6%, though some economists think the real number could be much higher.
Any spike in the rate would be a big political worry in the nation of 1.4 billion people.
And it’s likely to be near the top of the agenda at next week’s annual meeting of parliament.
Economists expect new stimulus measures to be unveiled when the lawmakers gather.
Some things are outside their control though.
Earlier surveys showed export orders slumping as other countries struggle with lockdowns.
Until that changes, China’s factories won't be getting too busy.