China's May industrial output rises 4.4% as economy struggles to recover

China's industrial output expanded 4.4 per cent in May from a year earlier but the gain was less than expected, official data showed on Monday, suggesting the economy is still struggling to get back on track after the coronavirus crisis.

Analysts polled by Reuters had expected growth to quicken slightly to 5.0 per cent from a year earlier as more businesses resumed production, following a rise of 3.9 per cent in April, the first expansion since the virus emerged from China late last year.

Retail sales fell 2.8 per cent on-year, more than a predicted 2.0 per cent decline, but pointing to some signs of recovery in consumer demand after a 7.5 per cent drop in April.

Sales have fallen for four straight months as shops, restaurants and other crowded places closed during the pandemic. Though strict anti-virus measures have been relaxed, consumers remain wary.

Fixed asset investment fell 6.3 per cent in January-May from the same period last year, compared with a forecast 5.9 per cent fall and a 10.3 per cent decline in the first four months of the year.

Private sector fixed-asset investment, which accounts for 60 per cent of total investment, fell 9.6 per cent in January-May, compared with a 13.3 per cent decline in the first four months of the year.