Dull China data prompts talk of relief measures
With growth in fixed-asset investment of 20.6pc missing forecasts, and other data failing to inspire, analysts revive talk of policy responses
Investment in China unexpectedly cooled last month while industrial output and consumption barely picked up, indicating the economy still lacks a strong momentum to rebound.
Analysts called for more deregulation and structural reforms but were split over the need for a policy easing, such as an interest-rate cut, as property investment remained strong.
Fixed-asset investment climbed 20.6 per cent in January-April from a year earlier, data from the National Bureau of Statistics showed yesterday. The rise was slower than the 20.9 per cent growth in the first quarter and below the market consensus of 21 per cent. Property investment, however, rose 21.1 per cent year on year in April, accelerating from March's 20.2 per cent.
Industrial production gained 9.3 per cent, faster than the 8.9 per cent growth in March, possibly reflecting two extra working days in April this year.
"Overall, the data pointed to slightly better economic growth [in the second quarter], but is still far from encouraging. And the diverging trend between real-activity growth and credit growth remains a worrying mystery," Societe Generale China economist Yao Wei said.
Overall, the data pointed to slightly better economic growth, but is still far from encouraging. And the diverging trend between real-activity growth and credit growth remains a worrying mystery
Total social financing, comprising bank lending and credit through non-banking channels, such as trust loans, jumped to 7.91 trillion yuan (HK$9.88 trillion) in the first four months, 63 per cent more than for the same period last year.