(Yicai Global) May 16 -- China’s economic data for April was worse than expected, but indicators, including consumption and industrial added value, maintained a strong rebound compared with the same period of last year.

Total retail sales of consumer goods hit CNY3.5 trillion (USD502.6 billion) last month, an 18.4 percent annual gain, National Bureau of Statistics data showed today. That was 7.8 percentage points up on March, but lower than the average 21.7 percent forecast of chief economists polled by Yicai Global.

The added value of industrial enterprises above a designated size grew 5.6 percent from a year ago, up 1.7 points on March, but came in below 9.6 percent forecast by the economists.

Fixed asset investment in the first four months rose 4.7 percent on a yearly basis. But it fell 0.4 percentage points from the growth notched up in the first three months and was lower than the forecast 5.4 percent.

Thanks to the continuous release of policy effects, as well as a low base in the same period of last year, the growth in main economic indicators for last month continued to rise year-on-year, and the economic operation continued to recover, NBS spokesperson Fu Linghui told a press conference.

But economic development still faces many difficulties and challenges, given the impact of the international environment and domestic demand, he added.

After China eased Covid-19 controls, the recovery of the offline service industry accelerated, contributing much to economic growth, with the service industry production index rising 13.5 percent year on year in April, up 4.3 points from March, Fu noted.

The accommodation and catering sectors recovered most strongly last month, with the production index rising 48.7 percent from a year earlier, up 18.8 points from March. This was followed by the wholesale and retail, transportation, and information technology service sectors with year-on-year growth of 18.8 percent, 17.6 percent, and 13.2 percent, respectively.

The consumption recovery has generally been confirmed, and the low base effect will continue to bring high growth within a certain period, Pang Ming, chief economist at US real estate services provider Jones Lang LaSalle’s China business, told Yicai Global.

The core driver in the next phase of the pick up in consumption will be stronger spending power bolstered by the restoration of employment, expectations, and confidence, he added.

Editors: Dou Shicong, Peter Thomas