China growth slowest in six years
China grew at its slowest pace in six years at the start of 2015 and weakness in key sectors suggested the world's second-largest economy was still losing momentum, intensifying Beijing's struggle to find the right policy mix to shore up activity.
Measures to support the property sector and a series of cuts in interest rates and bank reserve requirements look to have delivered less support to the economy than hoped, apart from feeding a stock market surge, raising expectations of more stimulus soon.
Gross domestic product (GDP) grew an annual 7.0% in the first quarter, slowing from 7.3% in the fourth quarter of 2014, China's statistics bureau said. While matching the median forecast in a Reuters poll, some analysts said it seemed stronger than data on the components of growth suggested.
"Despite a headline growth rate in line with expectations, underlying economic activities appear to have softened further," Qu Hongbin, HSBC's co-head of Asian Economic Research, said in a note.
"We expect policy makers to deploy further monetary easing and other growth-supporting measures in the coming weeks."
Analysts calculated the GDP deflator had fallen 1.2%, a six-year low, indicating broad deflationary pressures.
Monthly retail sales, industrial output and fixed asset investment data released with the GDP figures all missed analyst expectations. Growth in fixed-asset investment (FAI), a key economic driver, was the slowest since 2000, while industrial output grew at its weakest since the global financial crisis in 2008.
Power output, which some analysts use as a proxy for economic activity, fell an annual 3.7% in March, the biggest fall since the 2008 crisis.