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China's industrial production growth * reached its lowest level in more than 17 years in May, the world's second-largest economy fighting against trade tensions with the United States.
Data released Friday by the National Bureau of Statistics in China showed that industrial production growth fell to 5 percent in May, its lowest performance since February 2002, and a 5.4 percent drop from the previous month. previous. This figure was also significantly lower than the 5.5% growth forecast by economists surveyed by Reuters.
Some segments of the Chinese economy showed strength in May. Retail sales in China rebounded strongly to 8.6% in May from 7.2% in April, the worst monthly result since 2003. The economists polled by Reuters were expecting retail sales growth of 8%. 1% in May.
The disappointing figures of industrial production reflect an escalation of trade tensions between the United States and China. In mid-May, US President Donald Trump raised tariffs to 25 percent of the $ 200 billion worth of Chinese goods. Beijing has responded by increasing the levies on about 60 billion US dollars.
While the Chinese economy has grown at a faster pace than expected in the first quarter compared to the last three months of 2018, badysts say this was largely due to stimulus and loosening of flows credit. Recent data, including credit growth, was weaker than expected.
Beijing has stepped up support measures in recent weeks, including encouraging local governments to use special bonds for large projects to support economic growth.
"Fiscal stimulus measures could increase and will mainly consist of accelerating investments in existing infrastructure as planned and adding new infrastructure projects," said Iris Pang, an economist at ING.
* This story was changed to make it clear that the growth rate of Chinese industrial production slowed in May.
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