The National Bureau of Statistics said in an accompanying statement that enterprises are facing challenges such as weak demand, tight funds and high operating costs, and the basic needs of economic recovery Further compaction.
To support the rebound, China’s central bank this month unexpectedly reduced the amount of cash banks must hold in reserves for the first time this year.
While business and consumer sentiment are starting to improve, manufacturing remains under pressure amid sluggish global demand and persistently high costs.
Any fallout from the recent crisis of confidence in the global banking sector could also affect demand for Chinese goods, increasing pressure on manufacturers.
The decline in Chinese industrial profits deepened in the first two months of the year, official data showed this week, signaling a poor start to the recovery.
Factory activity hit as production and customer demand growth slowed, output and new orders sub-indices fell from February levels .
New export orders sub-index fell to .April, indicating subdued external demand.
Strong recovery in service activity
“As the service sector new orders index continues to rise, the strength is likely to continue in the coming months,” said Pinpoint Asset Management, president and chief economist. Scientist Zhang Zhiwei said.
Retail sales rose 3.5% year-on-year in the first two months, reversing a 1.8% annual decline in December, as weaker global demand weakened exports , consumption-driven economic recovery hopes to heat up. The government’s softening tone towards the private sector also boosted market confidence. 58400 Alibaba
( NYSE: 400 BABA ) The return of group founder Jack Ma and the company’s major revamp plan are seen as a signal that Beijing’s regulatory crackdown on private companies is coming to an end.