China’s factory output beats expectations despite Trump’s tariffs

China’s industrial output has beaten forecasts for April, further strengthening the resilience of the world’s second-largest economy.

The National Bureau of Statistics said industrial output rose 6.1% year-on-year last month, slightly lower than March’s 7.7%.

The growth beat the median estimate of a 5.7% rise in a Bloomberg survey of analysts, reflecting strong economic performance despite continued trade tensions with the US.

Retail sales and investment growth show mixed results
Economic indicators

Retail sales, a key gage of consumer spending, rose 5.1% in April, compared to March’s 5.9% increase and below economists’ expectations.

Growth in fixed-asset investment also slowed to 4% over the first four months of the year.

Despite the mixed results, China’s urban unemployment rate fell to 5.1% in April from March’s 5.2%, reflecting some resilience in the labor market amid economic headwinds.

Trade tensions impact on China’s economy
Trade impact

The latest economic data gives a complete picture of how China has dealt with rising trade tensions with the US.

Although the two reached a truce in their tariff war in May, uncertainty over further negotiations could possibly discourage businesses from ramping up production or investing in new projects.

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