China's growth engine picking up slowly, but challenges remain

Beijing

INDUSTRIAL output for the month of May rose for the first time this year as China's millions of factories reopened, but the world's second-largest economy still faces many challenges including lagging demand due to record unemployment.

Industrial production climbed 3.9 per cent in April from -1.1 per cent the previous month, better than analysts' expectations. The production of oil, coal, metals and electricity picked up as most of China's workers returned to work. Production of industrial robots was up 26.6 per cent and that of integrated circuits 29.2 per cent, pulled by production for the 5G infrastructure. "China's economy continued to recover in April after the sharp contraction in February," said Louis Kuijs, an analyst at Oxford Economics. "As expected, household consumption momentum remained the weakest link but it also improved substantially in April."