China Industrial Output Beats Estimates as AI Boom Offsets Property Drag

China’s industrial production expanded 4.5% in May from a year earlier, beating market expectations as booming demand for artificial intelligence (AI) and resilient exports masked the fallout from a protracted property crisis.

The figure underscores a deepening divergence in the world’s second-largest economy. High-tech manufacturing is surging, while traditional building materials continue to slump.

May’s output growth exceeded the 4.3% average forecast in a Caixin survey. Equipment manufacturing grew 9.5%, driving nearly 80% of total industrial output growth. The electronics sector surged 17% on the back of AI supply chains.