China’s economic data disappoint in April as Covid controls weigh

The persistent spread of Covid and resulting stay-home orders — primarily in Shanghai — forced factories to close or operate at limited capacity in April. Pictured here on May 12 is a refrigerator factory in Hefei, China, about a five hours’ drive from Shanghai.

Retail sales and industrial production in China plummeted in April, far worse than analysts had expected.

Retail sales were down by more than expected in April, falling by 11.1% from a year ago.

Industrial production dropped in April from a year ago, in contrast to expectations for a slight increase.

The spread of Covid and resulting stay- home orders forced factories to close or operate at a limited capacity last month.

The new downward pressure on the economy continued to grow because of the increasingly grim and complex international environment. The impact of Covid is temporary and the economy is expected to recover, according to the bureau.

Fixed-asset investment rose by 6.8% in the first four months of the year, slightly missing expectations. Investment in real estate fell by 2.7%, while manufacturing and infrastructure both increased.

According to the China Passenger Car Association, China's passenger car production dropped by 41.1% in April. The auto sector in China accounts for about one-sixth of jobs and 10% of retail sales, according to official figures.

The unemployment rate in China's 31 largest cities rose to a new high of 6.7% in April.

The unemployment rate went up from March to April. The unemployment rate for those aged 16 to 24 was three times higher.

Business and household demand for loans fell in April as the economy slowed.

The total social financing, a broad measure of credit and liquidity, was roughly halved last month from a year ago, according to the People's Bank of China.

Larry Hu, the Chief China Economist for the Australian company, said he expected the drop in credit demand to be short lived. The central government took its first action to save property on Sunday.

The rate is 20 basis points below the five-year loan prime rate.

Hu said in a note that the cut was not enough to turn the property sector around.

According to Moody's, the real estate and related industries account for 25% of China's GDP.

This is not a finished story. You can check back for updates.