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Industrial Output, Retail Sales in China Worse Than Expected in May

Industrial output across China registered a second month of gains during May, but grew at a lesser than expected pace amid weak demand in the wake of the coronavirus crisis globally. According to official figures released by the government, industrial output grew by 4.4% YoY in the month of May, after increasing by 3.9% in the previous month.

However, economists had forecast a growth of 5% in May’s industrial output. On a positive note, this was the highest reading for this figure seen since December 2019, marking the highest rate of expansion since the beginning of the coronavirus outbreak in China, which then spread to the rest of the world.

Industrial activity has failed to pick up even after China emerged out of the lockdown amid weak external demand which has driven export orders down. Domestic demand has also been recovering at a slower than expected pace, adding to more strain in this sector.

Meanwhile, retail sales across China fell for the fourth consecutive month during May. Retail sales were down by 2.8% YoY in May, better than the 7.5% drop seen during April but more severe than economists’ forecast which was for a 2% decline.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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