"Positive signals had emerged from the stable industrial output expansion as added value growth in the manufacturing industries accelerated and power consumption recovered".
- Sheng Laiyun, Capital Economics
According to the data released by the National Bureau of Statistics of China, the indicators of industrial production and retail sales continue their growth in May. Industrial production went up 6% on a yearly pace in May, the same as the previous month, while retail sales jumped by 10%, almost in line with April's data, when it accelerated by 10.1%. Overall, the economic powerhouse in June appears to be stable.
However, weakening private sector investment has raised concerns about the medium-term prospects. The pace of Chinese investment growth slowed notably during the first five months of this year, driving the world's second-largest economy and renewing uncertainty over its prospects. Fixed asset investment growth weakened to 9.6% in the January-May period as tepid demand and industrial overcapacity continued to weigh on the economy. This data could be compared to the 10.5% rise in the four months through April. Investment in real estate weakened, growing at 7% between the same period of four months compared to the same period last year.
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