After a record expansion in the January quarter, growth in April, including retail sales, slowed, showing an uneven recovery.

Due to the slowdown in factory output and the failure of retail sales to meet analysts’ expectations, China’s economy slowed in April from the previous month’s growth rate, indicating that there is greater pressure on consumption recovery.

Data released by the National Bureau of Statistics (NBS) on Monday showed that industrial production in April rose 9.8% year-on-year, which was lower than the 14.1% increase in March, but it was in line with the expectations of analysts surveyed by Reuters.

In the first quarter, China’s gross domestic product (GDP) grew by a record 18.3%, and many economists expect this year’s growth to exceed 8%.

Some have warned that continued global supply chain disruptions and a higher base of comparison will weaken development momentum in the coming quarters.

National Bureau of Statistics spokesman Fu Linghui said at a press conference on Monday that the Chinese economy showed steady growth in April, but at the same time new problems have emerged. He said: “The foundation for the domestic economic recovery is not yet solid.”

Compared with the economy paralyzed by COVID-19 in the same period of the previous year, China’s growth figures in the first month of this year have surged.

Retail sales in April rose 17.7% year-on-year, well below analysts’ expectations of 24.9%, and a decline from March’s 34.2% increase.

Fu said that consumption should maintain a steady recovery.

Data from the National Bureau of Statistics show that the sales growth rate of household appliances in April fell sharply from the previous month, from 38.9% in March to 6.1%.

Fixed asset investment or investment in factories and machinery increased by 19.9% ??in the first four months compared to the same period last year, while the predicted growth was 19%, and the growth in January-March was 25.6%.

Private sector investment in fixed assets accounted for approximately 60% of total investment, with an increase of 21% from January to April, and an increase of 26% in the first three months.

After the data was released, Asian stock markets were mixed on Monday.

Unbalanced economic recovery

The top decision-making body of the ruling Communist Party said last month that the country would encourage manufacturing and private investment to resume as soon as possible.

The Politburo meeting chaired by President Xi Jinping also warned that China’s economic recovery is still unbalanced and its foundation is not yet solid.

Due to the rapid economic recovery in the United States and the stagnant production of factories in other countries, the demand for Chinese products is strong. Export growth unexpectedly accelerated in April, and import growth reached the highest level in 10 years.

However, due to supply bottlenecks and rising costs putting pressure on production, factory activity also slowed in April.

The relevant departments promised to gradually reduce the monetary and fiscal stimulus measures injected into the economy each year, but there will be no drastic changes in policy. The latest data shows that credit has slowed significantly in April, which suggests that exits may be being realized at a faster-than-expected rate. The central bank injected medium-term cash into the financial system on Monday to match the amount due, which is largely the expectation of analysts.