China struggles with weak post-COVID economic recovery

Sales of Yizhuan Automobile Co.'s trash trucks picked up after China ended anti-virus controls in December, but their growth is in low gear as managers struggle to rebuild business lost during the pandemic.

China's economy rebounded at the start of 2023, but after a good first quarter, factory output and consumer spending are weakening.

An official survey in April found a record 1 in 5 young workers in cities were unemployed.

Yizhuan's sales are up only by single-digit percentages from last year's depressed level, according to its deputy general manager, Yu Xiongli.

″It is still in the process of recovering," Yu said. "Growth is quite slow."

China's economic growth accelerated to 4.5 percent over a year earlier in the three months ending in March from the previous quarter's 2.9 oercent, but forecasters say the peak of that recovery might already be past.

Growth would need to pick up further to reach the ruling Communist Party's target of "around 5 percent" for the year.

"For now, the ongoing momentum seems not that promising," said UBS economist Zhang Ning.

The economy needs a "domestic demand rebound" with government support to boost confidence for businesses and consumers, Zhang said.

The end of restrictions that isolated cities for weeks at a time and blocked most international travel prompted hopes for a consumer boom.

But retail sales are weak. Shoppers are uneasy about the economic outlook and possible job losses and are reluctant to commit to big purchases.

Retail sales in April surged 18.4 percent over last year's lackluster level, but that was barely half the growth of up to 35 percent called for by private sector forecasts.

Factory output fell 0.5 percent compared with...