China’s Industrial Output Growth Slows Down, Retail Sales Beats Forecast

Industrial output across China continued to grow into the month of March, although the pace has slowed down since the sharp surge seen in

Written by: Aiswarya Gopan • Thursday, May 13, 2021 • 2 min read

• Last updated: Thursday, May 13, 2021

China's Industrial Output Growth Slows Down, Retail Sales Beats Forecast

Industrial output across China continued to grow into the month of March, although the pace has slowed down since the sharp surge seen in the previous months. According to data published by the government earlier today, Chinese industrial output was up by 14.1% YoY in March, slowing down from the 35.1% increase seen in January-February and coming in below economists’ expectations for a reading of 17.2% instead.

On a positive note, however, retail sales across China posted a sharp rise during March, growing by 34.2% YoY against the previous reading of 33.8% YoY in January-February and far higher than the 28% increase forecast by economists. The rebound in China’s economy received a further boost after fixed asset investment also posted a sharp rise during Q1 2021, up 25.6% YoY, against economists’ expectations for a reading of 25%.

The upbeat economic data releases have failed to move the Chinese yuan, which continues to trade somewhat steady against the US dollar on Thursday. The pullback in the Chinese currency that occurred earlier in the week appears to have come to a halt for now, but moves in the currency pair appears to be dictated by the focus on US inflation data for now.

USD/CNH

The Chinese yuan is trading under pressure after the US dollar received a boost during the previous session after a stronger than expected consumer prices increase raised fears of inflation surging higher, which drove up US Treasury yields. In addition, USD/CNH is also enjoying support from an increase in demand for the dollar by Chinese companies listed overseas in order to make their dividend payments in the coming weeks.

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ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a financial journalist, editor, and content strategist with more than 19 years of experience across financial markets, fintech, blockchain, and technology. She has worked with leading cryptocurrency exchanges, including BingX and KuCoin, driving content strategy, market research, and editorial initiatives covering digital assets, DeFi, Web3, and global financial markets. Drawing on a background in cybersecurity, technology journalism, and market research, Aiswarya specializes in translating complex financial and blockchain developments into clear, timely insights. At FX Leaders, she covers cryptocurrency, stocks, forex, and macroeconomic developments across the Asian and European trading sessions.