China’s industrial production during the first two months of the year grew at its slowest rate since the global financial crisis, the government said on Saturday.
The measure, which gauges output at factories, workshops and mines in the world’s second-largest economy, rose 5.4 percent year-on-year in January and February.
The figures were the weakest since November 2008 as China seeks to effect a difficult transition from an investment and export-driven growth model to one led by consumer spending.
Retail sales, a key indicator of consumer spending, increased 10.2 percent in the same period, the National Bureau of Statistics said. Fixed-asset investment, a measure of mainly government spending on infrastructure, expanded 10.2 percent on-year for the first two months of 2016.
Results fell short of economists’ expectations, according to a survey by Bloomberg News, which predicted a year-on-year increase in retail sales of 10.9 percent, while industrial production was projected to expand 5.6 percent.
NBS analyst Jiang Yuan blamed the disappointing industrial output data on sluggish foreign demand, the government’s efforts to cut pollution-heavy production of steel, cement and coal and slumping output of tobacco products.
“The decline in industrial output growth in the January-February period was due to industrial structural reforms and the unstable basis of an industrial recovery as well as seasonal factors,” Jiang said in a statement.
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