Menu Close

Chinese Economic Indicators Tumble in Prolonged Lockdowns

This is a syndicated repost published with the permission of Statista | Infographics. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Following prolonged coronavirus lockdowns in major cities like Shanghai, Chinese businesses are feeling the crunch of the restrictions. Both retail sales and industrial production exhibited negative growth in April, the National Bureau of Statistics China said in a release Monday. Retail sales had already shrunk in March, albeit on a lower level. Analyst had expected less than stellar results for the month, but did not predict this grave a decline.

Chinese retail sales and industrial production grew rapidly in the beginning of 2021 as costumers and companies were catching up after the 2020 Covid-19 market slump. Later in 2021 and into 2022, the important economic indicators had stabilized on a slightly lower level than pre-pandemic. Since then, the inevitable clash of the more contagious Omicron variant with China’s zero Covid strategy has been leading to China’s economy taking its second Covid hit.

In response to the news, Asian stocks struggled on Monday, dragging already flailing global markets down with them as worries about economic growth are once again rising. Some hope might be on the horizon as Chinese officials said that an reopening in Shanghai should start June 1.

This chart shows the year-over-year change in monthly Chinese retail sales and Chinese industrial production (in percent).

chinese retail sales industrial production growth

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share