China's Q1 GDP beat expectations rising 7.4% year-over-year.
Economists polled by Bloomberg were looking for Q1 GDP to rise 7.3%. But this was down from 7.7% the previous quarter, showing that China's economy continues to slow.
Quarter-over-quarter however GDP was up 1.4% or 5.7% annualized. This was also slower than revised 1.7% growth in Q4 2013 and 7% annualized.
Meanwhile, year-to-date Chinese retail sales were up 12%, beating expectations for an 11.9% rise. For March, retail sales were up 12.2%.
Industrial production was up 8.8% in March, below expectations for a 9% rise.
Year-to-date fixed asset investment was up 17.6%, missing expectations for an 18% rise.
"In our view, the weaker 1Q growth could be due mainly to government’s much more serious anti-pollution measures, an escalation in anti-corruption and anti-vice campaign, cyclical slowdown of the property sector, lagged impact of rising CNY and rates in 2H13 and government’s efforts in controlling local government debt and some shadow banking practice," Bank of America's Ting Lu said in a March 31 note to clients.
Investors are again beginning to worry about a Chinese hard landing, which is four straight quarter of below 5% growth.
China has set a growth target of 7.5% and economists think the government has a floor of 7%. China's Labor Ministry says 7.5% growth generates 10 million jobs and that growth below 7% could cause high unemployment.
Bloomberg economist Michael McDonough tweeted this chart showing that the trajectory of YoY and QoQ GDP growth.
