A leading indicator for China's economic activity increased in April, a report from the Conference Board showed Friday.
The leading economic index (LEI) increased 1.5 percent in April to reach 260.8. This followed a 0.6 percent decline in March and a 1.3 percent increase in February. Four of the six components contributed positively to the index in April.
"The LEI for China rebounded in April primarily due to renewed real estate activity and credit expansion," said Andrew Polk, Conference Board resident economist in Beijing. "But both factors remain major wild cards for growth: real estate activity has been volatile recently, and credit has become less effective at boosting the economy," the economist said.
Polk said though these drivers may help ease the slowdown in the short-term, the shackle of overcapacity in the industrial sector will remain a drag on the economy.
The coincident economic index, which measures current economic activity, increased 0.2 percent in April to 237.9. This comes after a 0.3 percent increase in March and a 2.8 percent increase in February. Four of the five components contributed positively to the index.
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