Investing.com-- Chinese industrial production grew more than expected in April as factory output remained strong despite some headwinds to overseas demand from steep U.S. trade tariffs.
But local demand appeared to be faltering, as retail sales for the month grew less than expected.
Chinese industrial production grew 6.1% year-on-year in April, more than expectations for growth of 5.7%. The pace of growth, however, did slow from the 7.7% rise seen in the prior month.
Still, the data showed production by Chinese factories remained strong, even as they grappled with softening overseas orders due to steep U.S. import tariffs.
In April, Chinese businesses were contending with U.S. tariffs of as high as 145%, following a bitter tariff exchange between Washington and Beijing.
But both sides agreed to temporarily lower their tariffs in early-May, heralding some relief for Chinese companies.
Other data prints on Monday still reflected some headwinds from the U.S. trade war.
Retail sales grew 5.1% y-o-y in April, less than expectations of 6.0% and slower than the 5.9% rise seen in March.
The print showed an ongoing recovery in Chinese consumer spending faltered in April, especially as the country’s economic outlook soured. Still, retail spending is expected to have picked up with the Labor Day holidays in early-May.
Chinese fixed asset investment- which gauges capital spending by local businesses- rose 4.0% y-o-y, less than expectations of 4.4%. This came as businesses also put off major spending plans due to uncertainty over the trade war.
But China’s unemployment rate improved unexpectedly to 5.1% from 5.2% in the prior month.