Chinese industrial production and retail sales in May were below forecasts

Today, the PRC Statistics Office reported that “under the reliable leadership of the CPC Central Committee and Comrade Xi Jinping as its pivot, all regions and departments have consolidated and coordinated the fight against the epidemic and controlled economic and social development.” The department noted that retail sales in May were up 12.4% from May last year, and industrial production was up 8.8%.

These figures were below the forecasts of analysts polled by Reuters, who expected retail sales to grow by 13.6%, and industrial production – by 9%. China’s industrial production growth has been slowing for the third straight month, analysts suggest this may be due to new outbreaks of the epidemic in the industrialized province of Guangdong. Analysts at the Japanese bank Nomura believe that the suspension of a number of enterprises and seaports in the south of the country at the end of May will slow down the economic recovery. At the same time, they believe that the outbreak will pass rather quickly and will not affect the stocks of industrial goods.

Evgeny Khvostik

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