Chinese economy continues to recover in May

Chinese economy continued to recover in May, witnessing the steady growth of industrial production as well as a marked increase in consumer spending, data from the National Bureau of Statistics (NBS) showed on Monday.

In May, the value-added industrial output, an important economic indicator, rose 5.6 percent year on year. Official data said the equipment and high-tech manufacturing sectors in particular posted strong growth last month, with their output up 7.5 percent and 10 percent from a year ago, respectively.

The measures for industrial equipment upgrades that were announced in March will gradually come into effect, adding impetus to industrial production, NBS spokeswoman Liu Aihua said during a press conference on Monday.

"The figures shows the healthy recovery of Chinese economy, and China's economic development is on the right track to a new recovery," Liu Zhiqin, senior fellow at the Chongyang Institute for Financial Studies, Renmin University of China, told CGTN.

Meanwhile, the country's total retail sales of consumer goods expanded 3.7 percent year on year to 3.92 trillion yuan ($537 billion) in May, data showed. In the same month, retail sales of goods rose 3.6 percent from a year ago to more than 3.49 trillion yuan, while catering revenue hit 427.4 billion yuan, an increase of five percent year on year.

Liu Aihua noted that the May Day holiday and pre-sales for the "618 Shopping Festival" have contributed to the increase in consumption.

Echoing the official interpretation, Liu Zhiqin emphasized the importance of sustainable consumption dynamics, suggesting to make everyday as a holiday, a good opportunity for consumption.

The data also showed that the overall fixed-asset investment rose by four percent year on year in the first five months of 2024. Excluding the property development investment, the country's fixed-asset investment climbed 8.6 percent during the same period.

The year-on-year decline in sales of newly built commercial housing has narrowed in the first five months of the year. "We must acknowledge that it will take some time for the effects of policy measures to be shown, and that the real estate market remains in the process of adjustment," the spokesperson noted.

The official said that overall, the main indicators see recovery, and new growth drivers are increasing rapidly, but the country still faces many challenges both internally and external.

(With input from Xinhua)