CHINA yesterday reported surprisingly weaker growth in industrial output and retail sales for April, reinforcing expectations that the government needs to roll out more stimulus measures as the trade war with the United States escalates.

Investment also stumbled unexpectedly, suggesting China’s economy is still struggling for better footing even as a sharp hike in U.S. tariffs Friday ratcheted up pressure on its exporters.

Growth in industrial output slowed more than expected to 5.4 percent in April from the same period a year earlier, pulling back from a surprisingly strong four-and-a half-year high of 8.5 percent in March, which some analysts had suspected was boosted by seasonal and temporary factors.

China’s exports unexpectedly shrank in April in the face of U.S. tariffs and weaker global demand, while factory surveys suggest new export orders remain sluggish.

Retail sales were also worse than expected, with the headline number rising 7.2 percent, the slowest pace since May 2003, data released by the National Bureau of Statistics (NBS) showed.

That compared with March’s 8.7 percent and forecasts of 8.6 percent, highlighting concerns that consumers are growing less confident as the economic slows and the trade war drags on.

Earlier this week, industry data showed automobile sales in China, the world’s largest auto market, fell 14.6 percent in April year on year, marking the 10th consecutive month of decline.

Fixed-asset investment growth slowed to 6.1 percent in the first four months of this year. Analyst polled had expected it to rise 6.4 percent, picking up from 6.3 percent in the first quarter of this year.

Private sector fixed-asset investment grew 5.5 percent in the same period, easing sharply from an increase of 6.4 percent in the January-March period. Private investment accounts for about 60 percent of overall investment in China.

Growth in infrastructure spending, a powerful economic driver, held steady at 4.4 percent year on year in January-April from the first quarter of this year.

China is trying to engineer a construction boom to rekindle demand, even as it steps up support measures to keep cash-starved smaller companies afloat, ranging from tax cuts to financial incentives for firms which do not lay off staff.

(SD-Agencies)