The Conference Board's leading indicator for China's economic activity increased at a steady pace in April, suggesting a modest growth ahead. Meanwhile, the underlying indicators showed some degree of weakness, sending a mixed message over the prospects of the economy.
The Conference Board said its leading economic indicator increased 0.8 percent from a month earlier to 232.4 in April, following a 0.8 percent rise in March and a 1 percent gain in February.
Four of the six components contributed positively to the index in April.
"While the composite index continued to increase, the strength in the underlying indicators was very much concentrated in bank loans and consumer sentiment," Conference Board China economist Andrew Polk said.
"However, leading indicators in manufacturing and real estate sectors showed significant slowing in April," the economist noted.
The coincident economic index, which measures current economic activity, declined 0.8 percent in April to 216. This comes after a 0.6 percent increase in March and a 3.9 percent increase in February.
Three of the five components contributed positively to the index in April.
China Securities Journal said Monday that Premier Wen Jiabao may announce stimulus measures to aid the slowing economy. He has vowed to give higher priority to economic growth in the period ahead on Sunday, in a sign that the Chinese government is acknowledging growing economic difficulties in the World's second largest economy.
Conference Board's Andrew Polk said while the leading index growth continues to signal a moderate expansion ahead, the pattern of offsetting strengths and weaknesses among the underlying indicators suggests volatility and uncertainty, exacerbating weakening current conditions in the economy.
Earlier this month, the People's Bank of China cut the reserve requirement ratio by 50 basis points to 20 percent for large commercial banks, allowing them to lend more amid slowing economic growth.
The Chinese economy expanded 8.1 percent year-on-year in the first quarter of 2012, the weakest pace in nearly three years with sluggish demand from Europe weighing on exports.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.