FX.co ★ China Economic Recovery Remains Fragile:NBS

China's economic recovery requires further strengthening due to ongoing external uncertainties, according to a statement from the National Bureau of Statistics. This commentary comes after the release of April activity data, which presented a mixed economic picture. Notably, China's industrial production saw a year-on-year increase of 6.1%, exceeding the forecasted 5.5% but marking a deceleration from the 7.7% growth experienced in March, which was the most rapid in nearly four years. On the other hand, retail sales growth fell short of expectations, highlighting issues with domestic consumption and slow income growth. The urban unemployment rate, however, showed improvement, dropping to a four-month low of 5.1% from March's 5.2%. Fixed-asset investment, which encompasses sectors like property and infrastructure, increased by 4.0% from January to April, falling short of the anticipated 4.2%. The real estate sector continued to be a hindrance, with investment down by 10.3% for the year to date. Earlier in May, a tentative agreement between Beijing and Washington was reached to lift most tariffs for a 90-day period, paving the way for further negotiations toward a more sustainable long-term agreement.