Chinas Industrial Output Growth Reportedly Slowed to Multi-Year Low in April

China’s Industrial Output Growth Reportedly Slowed to Multi-Year Low in April

China’s industrial production reportedly expanded by 4.1% year-on-year in April 2026, slowing significantly from the 5.7% growth recorded in March and falling short of market expectations for a 5.9% increase. According to data released by the National Bureau of Statistics of China, the latest figure marked the weakest pace of industrial expansion since July 2023, as the economic fallout linked to the Iran war appeared to weigh on manufacturing activity and broader industrial momentum.

The slowdown was reportedly visible across several major sectors of the economy. Mining activity moderated to 3.8% growth from 5.7% in the previous month, while manufacturing output slowed to 4.0% from 6.0% in March. In contrast, production related to electricity, heat, gas, and water accelerated to 5.3%, compared with 3.5% previously. Within the manufacturing sector, 29 out of 41 major industries reportedly recorded year-on-year gains. Strong growth was observed in computers and communications equipment, which expanded 15.6%, while railway, shipbuilding, and transportation equipment rose 8.2%. Automotive production also increased by 9.2%, alongside gains in chemicals, machinery, textiles, agriculture and food processing, and oil and gas-related industries.

However, not all sectors maintained positive momentum. Production of non-metallic mineral products reportedly contracted by 6.5%, highlighting continued weakness in certain industrial segments tied to construction and infrastructure demand. For the first four months of 2026, China’s industrial output was said to have risen 5.6% compared with the same period a year earlier. On a monthly basis, industrial production edged up just 0.05%, indicating subdued short-term momentum.

According to Trading Economics projections, China’s industrial production growth was expected to reach around 5.0% by the end of the current quarter. Longer-term forecasts suggested industrial output growth could trend near 4.1% in 2027 and gradually ease toward 3.7% in 2028, reflecting expectations of moderating economic expansion and softer global demand conditions.