Chinese manufacturing falls short of growth forecast

Posted on 13 May 2014 by Victoria Fitzgerald

China has revealed disappointing manufacturing data, the BBC has reported.

Industrial output increased 8.7% in April, falling short of an 8.9% increase according to forecasts.

Fixed-asset investment grew by 17.3% from January to April, 0.4 % less than estimates and retail sales rose 11.9%, compared with a 12.2% forecast, according to China’s Naitonal Bureau of Statistics.

The data suggests the Chinese government may not achieve its 2014 growth target of 7.5%, despite endeavors to address risks to the economy.

Experts anticipate China will publish its weakest economic expansion in almost 25 years.

Bejing will deploy strategies to prevent excess credit and stimulate its economy.

Chief China economist at Nomura expects, Zhiwei Zhang said:

“The pressure for more policy easing continues to build, though in his latest speech People’s Bank of China Governor Zhou Xiaochuan indicated that the government may want to wait for more data before deciding whether to ease policy or not.”