China, Covid effect on industrial production and investments in fixed assets in April. Data worse than expected

In April, China’s industrial production fell by 2.9% on an annual basis, far worse than the + 0.4% increase expected by the consensus and in sharp deceleration compared to the increase in March, equal to + 5% . The trend is explained by the severe lockdown measures that China has imposed as part of its zero Covid policy, to stem the cases of infection triggered by the strongest Covid wave since 2020.

Several factories have suspended production for safety reasons. Fixed investments, excluding those in the agricultural sector, increased by 6.8% on an annual basis, compared to the + 7% expected and slowing compared to the previous growth, equal to + 9.3%.