Disappointing manufacturing and property data reveal fresh signs of weakness that could pressure Beijing to prop up the economy as the country aims for 7.5 percent growth this year, the Wall Street Journal reported Tuesday.
April data released Tuesday suggest that the effects of the property market are being felt in factory output, retail sales, and investment in machinery, land and other physical assets, the report said.
All of these sectors posted slower growth rates compared with a year earlier, figures that “signal that perhaps economic activity hasn’t moved up but is still at the bottom,” Australia & New Zealand Banking Group Ltd economist Li-Gang Liu was quoted as saying.
Spending on real estate makes up about a quarter of China’s economy and UBS AG economist Wang Tao said the risk to the sector is her “most worrisome concern for the Chinese economy this year”.
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