China's Industrial Production, Retail Sales Growth Eases

China's industrial production and retail sales growth decelerated more-than-expected in April reflecting weak foreign demand and domestic spending at the start of second quarter, data published by the National Bureau of Statistics showed Monday.

Industrial production expanded 6.5 percent year-on-year in April, weaker than the 7.6 percent rise in March. Economists had forecast a 7 percent increase.

Likewise, retail sales growth eased to 10.7 percent from 10.9 percent in March. Sales were forecast to climb 10.8 percent.

During January to April, fixed asset investment excluding rural areas increased 8.9 percent compared to 9.2 percent growth in three months to March. Economists had forecast 9.1 percent expansion.

NBS data showed that property development investment increased 9.3 percent during January to April, versus 9.1 percent in January to March period.

Softer foreign demand and domestic consumption were the immediate culprits, with infrastructure and property activity actually holding up reasonably well, Julian Evans-Pritchard, an economist at Capital Economics, said.

"But we doubt the current strength in these areas can be sustained given that policy is being tightened and the property market is starting to cool," the economist added.

The International Monetary Fund forecast China to expand 6.6 percent this year and 6.2 percent in 2018.

China's economy expanded 6.9 percent in the first quarter of 2017, the fastest since the third quarter of 2015. The government targets about 6.5 percent growth for this year.