"The figures are suggesting that perhaps the economic momentum has bottomed out"
- Loius Kuijs, a China economist at RBS
A number of economic data releases from China, including retail sales and industrial output, broke the recent streak of worse-than-expected data from the world's second biggest economy. Total production from China's mines, manufacturers, and utilities grew 6.1% year-over-year in May, the National Bureau of Statistics reported. The figure followed the 5.9% growth in April and beat economists' forecasts for a 6.0% gain in industrial production. Additional data from the NBS showed fixed asset investment for January-to-May period surging 11.4% from a year earlier, weaker than the expected rate of 12.0%. Also, a separate report showed retail sales soared 10.1% from a year earlier, slightly stronger than April's 10% increase despite recent signs of sluggish domestic demand from worse-than-expected import and inflation figures.
Yet, a slew of recent important economic indicators disappointed markets. In the first quarter, China's economic growth slowed to 7.0%, its lowest level in six years. China's economy expanded 7.4% in 2014, the slowest pace in 24 years and coming in well below the government's target for the first time since 1998. China's imports plunged 17.9% in May, more than the 10.7% decline forecast. China's consumer price inflation climbed 1.2% in May from the year-earlier period, slightly below the 1.3%forecast and the 1.5% gain in April.
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