Factory output tops f39;casts, retail sales slow
Factory output likely buoyed by strong exports
New home prices fall fastest pace in 9 years
More policy support needed to shore up economy, analysts say

BEIJING, May 17 Reuters China39;s factory output topped forecasts in April, helped by improving external demand, although retail sales unexpectedly slowed and the property sector remained a drag on the economy, piling pressure on Beijing to do more to support growth.

A mixed set of data on Friday followed other indicators for April that showed a patchy recovery in the world39;s secondlargest economy, with trade and consumer prices perking up but credit growth mired by weak consumer confidence.

Industrial output grew 6.7 yearonyear in April, National Bureau of Statistics NBS data showed, accelerating from the 4.5 pace seen in March and above the 5.5 increase tipped in a Reuters poll of analysts.

However, retail sales rose just 2.3, the slowest increase since December 2022, off the 3.1 increase in March and far short of the forecast 3.8 rise.

The data pattern remains one of strong external demand and weak domestic demand. The weakness in domestic demand is clearly a result of the deterioration in real estate, said Xing Zhaopeng, ANZ senior China strategist.

Current rebalancing policies, such as consumer goods tradeins or special treasury bonds, can only partially hedge the downward spiral of domestic demand, he added.

The retail figures were not helped by an…