Media ININ Economy We Trust
Media IN/Abudhabi/11-05-2019
The Chinese economy advanced 6.4 percent year-on-year in the March quarter of 2019, the same pace as in the previous quarter but slightly above market expectations of a 6.3 percent expansion. In the same way industrial output growth increased significantly and consumer demand strengthened amid government’s pro growth policies.
The value added of the tertiary industry, which accounted for 57.3 percent of the GDP, was up by 7 percent, expanding by 0.6 percentage points compared with Q1 2018; the industrial sector grew by 6.1 percent and the agricultural by 2.7 percent. Consumption continued to be the linchpin in driving up demand, contributing 65.1 percent to Q1 economic growth.
Industrial output rose by 8.5 percent year-on-year in March, easily beating market consensus of a 5.9 percent increase and accelerating from a 5.3 percent rise in the previous period.
Output expanded at a stronger rate for all components: manufacturing (9 percent compared to 5.6 percent in January-February), utilities (7.7 percent compared to 6.8 percent Jan-Feb), and mining (4.6 percent compared to 0.3 percent in Jan-Feb).
Retail sales increased by 8.7 percent year-on-year in March, faster than a 8.2 percent gain in the prior period and above market expectations of a 8.4 percent gain.
It was the largest rise in retail trade since September last year, as sales advanced further for garments (6.6 percent compared to 1.8 percent in January-February); cosmetics (14.4 percent compared to 8.9 percent in Jan-Feb); personal care (16.6 percent compared to 15.9 percent in Jan-Feb); home appliances (15.2 percent compared to 3.3 percent in Jan -Feb); furniture (12.8 percent compared to 0.7 percent in Jan-Feb); oil & oil products (7.1 percent vs 2.5 percent in Jan-Feb); telecoms (13.8 percent compared to 8.2 percent in Jan-Feb); and building materials (10.8 percent compared to 6.6 percent in Jan-Feb).
In compariosn, sales fell for both jewelry (-1.2 percent compared to 4.4 percent in Jan-Feb), and office supplies (-4 percent compared to 8.8 percent in Jan-Feb). Considering the first quarter of 2019, retail sales grew by 8.3 percent from the corresponding period a year earlier.
From January to March, fixed-asset investment advanced 6.3 percent from a year earlier, stronger than a 6.1 percent growth in the preceding quarter. Public investment rose further (6.7 percent vs 5.5 percent in January-February) while private investment growth eased (6.4 percent vs 7.5 percent).
Figures released earlier showed China’s exports grew 0.9 percent in the first quarter, while imports shrank 4.4 percent.
On a quarter-on-quarter basis, the economy expanded 1.4 percent in the first quarter, compared to a 1.5 percent growth in the previous period and matching market estimates.
