China's industrial output returned to growth for the first time this year in April, official data showed Friday, but another sharp drop in retail sales indicated crucial consumer demand remains weak, which could scotch hopes for a quick economic recovery.
Analysts also voiced concerns over an uptick in urban unemployment, adding that the outlook remains unclear as key export markets struggle to reopen after weeks of lockdowns around the world.
The forecast-beating 3.9 percent rise in industrial production was taken as a sign that China - where the pathogen first emerged - is bouncing back after weeks of shutdowns that helped shrink the world's number two economy 6.8 percent in the first quarter.
The reading - which overshot the 1.5 percent estimate in a Bloomberg poll - came after a small downturn in March and 13.5 percent collapse in the first two months of the year, which marked the first contraction in three decades.
However, with the consumer playing an increasingly key role in the Chinese economy, news that retail sales dropped 7.5 percent highlighted the tough road ahead as people worry about returning to their normal habits even as infection and death rates remain low.
Still, the reading was much better than the near-16 percent drop in March but worse than expectations.
Also providing a headache for leaders ahead of the National People's Congress annual legislative session next week is a 0.1 percentage point rise in unemployment to six percent.
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