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Investing.com-- Chinese industrial production grew much more than expected in March as continued economic support from Beijing helped local producers amid an escalating trade war with the U.S.
Retail sales for March also jumped amid improving consumer spending, aided by the government’s initiatives to boost local consumption.
Industrial production rose 7.7% year-on-year in March, against expectations it would remain steady at 5.9%, as seen in the Jan-Feb period, government data showed on Monday.
In March, local producers significantly ramped up output in a bid to front-load exports ahead of the impending steep U.S. trade tariffs, which were raised to a total of 145% by U.S. President Donald Trump in April.
The acceleration was driven by concerns that the new tariffs, would severely limit market access and raise costs for overseas buyers, prompting exporters to ship as much as possible before the deadline.
However, the longer-term outlook remains clouded, as sustained trade restrictions could dampen demand, disrupt supply chains, and weigh on overall industrial output.
Beijing is expected to dole out even more economic support to offset the headwinds from such a conflict.
China’s March retail sales- a key gauge of consumption- jumped 5.9%, above expectations of a 4.2% growth.
Beijing’s latest stimulus targets consumer spending, with subsidies on staples and electronics aimed at boosting private consumption.
Fixed asset investment in March rose 4.2%, largely in line with expectations.
China’s unemployment rate came in at 5.2%, down from 5.4% in Jan-Feb.