Market Update
U.S. Indexes Turn Lower After Rate Path Worries Resurfaced
Barry Adams
19 Apr, 2023
New York City
Stocks in early trading turned lower as investors awaited a fresh batch of earnings and debated future rate path and terminal rate levels.
Despite the rising rates and growing anxieties related to elevated inflation, large banks and financial services are reporting steady sales and above-normal profits.
The Federal Reserve has lifted rates nine times in the last thirteen years, but banks have still not raised rates on deposits but have immediately passed on higher rates to borrowers.
Wage gains are not driving the current inflation as wage increases are lagging overall inflation.
Current drivers of inflation are fuel prices, housing market and above inflation price increases carried out by corporations.
Manufactured goods price increase and service inflation were the main drivers of profit for the last five quarters, the trend reflected in the latest quarterly results.
Home Affordability and High Rates Dampens Demand for Mortgages
Mortgage applications in the week ending on April 14 declined after rates rose and buyers struggled with elevated home prices, the Mortgage Bankers Association reported Wednesday.
Mortgage applications fell 8.8% reversing the gain of 5.3% in the previous week.
The average contract rate for 30-year fixed-rate mortgage, for loan balances less than $726,000, increased to 6.43%.
Home purchase mortgage applications dropped 10% and refinance applications declined 5.8%.
“Affordability challenges persist and there is limited for-sale inventory in many markets across the country, so buyers remain selective on when they act,” MBA's chief economist Joel Kan noted in the weekly release.
Indexes & Yields
The S&P 500 index declined 0.2% to 4,146.0 and the Nasdaq Composite index dropped 0.4% to 12,109.95.
The yield on 2-year treasury notes rose to 4.26%, 10-year treasury notes advanced to 3.62% and 30-year treasury bonds to 3.81%.
Crude oil fell $1.75 to $79.10 a barrel and natural gas futures hovered at $2.33 a thermal unit.
U.S. Stock Movers
Tesla Inc decreased 2.2% to $180.25 after the electric vehicle maker lowered prices on some of its models for the sixth time this year.
Netflix Inc declined 1.8% to $327.59 after the video streaming services provider reported better-than-expected earnings in the first quarter but offered weak second quarter outlook.
Morgan Stanley declined 3% to $87.0 after the financial services provider said first quarter revenue and earnings fell.
Revenue in the first quarter decreased to $14.5 billion from $14.8 billion and net income dropped to $3.0 billion from $3.7 billion and diluted earnings per share eased to $1.70 from $2.02 a year ago.
Revenue in the institutional securities segment decreased to $6.7 billion from $7.8 billion, wealth management increased to $6.5 billion from $5.9 billion and investment management declined to $1.28 billion from $1.33 billion a year ago.
Assets under management dropped to $1.34 trillion from $1.44 trillion a year ago.
Fox Corp Class A stock declined 0.7% to $33.75 after the company agreed to pay $787.50 million to settle a lawsuit brought by Dominion Voting System and avoided a 6-week trial.
Dominion had asked for $1.6 billion in damages but settled for a smaller amount after Fox News and its cable affiliates repeatedly aired false claims that the voting machine maker had helped rig the 2020 presidential election in favor of Joe Biden against Donald Trump.
European Markets Paused After Core Inflation Stayed Near Record Levels
Bridgette Randall
19 Apr, 2023
Frankfurt
European markets paused but stayed near the record territory as rate path worries resurfaced.
The latest reading on consumer price inflation, showed the stubborn nature of inflation forces, as the headline inflation stayed above 10.0% and core inflation hovered near the record level reached six months ago.
After the inflation data, traders forecasted another 25 basis points increase in UK's interest rates after the policy meeting on May 11.
But investors are still divided on the next moves from the U.S. Federal Reserve. Most investors are anticipating a rate hike of 25 basis points on May 3rd, but the rate path is uncertain after.
Markets anticipating that the Fed may pause after the rate hike in May but terminal rates may rise to as high as 5.75%.
On the earnings front, Heineken reported larger-than-expected decline in beer sales in the first quarter but reaffirmed its annual earnings outlook.
ASML Holding, the Netherlands-based semiconductor chip equipment maker, reported better-than-expected earnings.
Euro Area Core Inflation Accelerated In March
The Euro Area consumer price inflation eased for the fifth month in a row, Eurostat reported Wednesday.
The annual rate of price increase in March slowed to 6.9%, the lowest level since February 2022 and significantly lower than the peak rate of 10.6% in October.
Despite the decline in overall rate of inflation, core inflation which excludes food and energy, accelerated to record high 5.7%.
The rise in core rate put the stock market on alert and raised the prospect of the European Central Bank continuing its aggressive rate hike policy.
Service inflation accelerated to 5.1% from 4.8% in February and food, alcohol and tobacco inflation expanded to 15.5% from 15.0% respectively.
Energy prices declined 0.9% in March, first month of price decline in two years.
UK Consumer Inflation Stays Above 10%
The consumer price inflation rate eased to 10.1% in March from 10.4% in February, the Office for National Statistics reported Wednesday.
The consumer price inflation remained above 10% for the seventh month in a row and well above the 2% target set by the Bank of England.
Inflation was driven by price increases in food and elevated cost of energy utilities and housing.
Food and non-alcoholic beverage inflation accelerated to 19.1% from 18.0% in February and housing and utilities inflation eased slightly to 26.1% from 26.6% in the previous month.
Core rate of inflation, which excludes food and energy, rose 6.2% in March, slightly lower than the peak rate of 6.5% in September 2022.
Indexes & Yields
The DAX index decreased 0.1% to 15,862.75, the CAC-40 index declined 4.75 points to 7,528.83 and the FTSE 100 index decreased 0.3% to 7,883.07.
The yield on 10-year German Bunds rose to 2.52%, French bonds crossed 3.0%, the UK Gilts increased to 3.84% and Italian bonds to 4.35%.
The euro traded at $1.095, the British pound at $1.243 and the Swiss franc at 89.83 cents.
Brent crude oil declined $1.33 to $83.33 a barrel and the Dutch TTF natural gas hovered at Є42.70 per MWh.
Europe Stock Movers
Resource stocks were on the defensive after commodities prices eased a day after China optimism lifted prices.
Glencore Plc fell 0.9% to 493.30 pence, Anglo American plc declined 2.2% to 2,739.0 pence and BHP Group Limited decreased 0.8% to 2,520.50 pence.
Heineken Holding NV increased 1.7% to €87.50 after the company reported first quarter sales increased 9.2% to €6.4 billion.
Heineken brand beer volume rose 2.3% but overall organic beer volume declined 3% to 54.8 mhl.
ASML Holding NV decreased 2.4% to €574.70 after the advanced semiconductor equipment maker said revenue in the first quarter increased to €6.7 billion from €6.4 billion a year ago.
Net income in the first quarter increased to €1.95 billion from €1.81 billion and diluted earnings per share rose €4.96 from €4.60 a year ago.
Net booking in the quarter declined to €3.8 billion compared to €6.3 billion in the fourth quarter.
ASML forecasted second quarter 2023 net sales between €6.5 billion and €7.0 billion and a gross margin between 50% and 51%.
U.S. Stocks and Bond Yields On Hold With Earnings In Focus
Barry Adams
18 Apr, 2023
New York City
Stocks on Wall Street lacked direction and investors remained firmly focused on the latest batch of earnings.
With the recent turmoil in the regional banking sector, earnings from regional banks were closely watched and large banks were pored over for clues about consumer spending.
Bank of America sharply lifted its estimate of loan losses and Goldman Sachs revenue fell on the weakness in investment banking and fixed-income and commodities trading.
Commodities prices attempted a rebound after China reported better-than-expected growth in the first quarter.
China's GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world's second largest economy may exceed the 5.0% growth target set by the government in 2023.
Apple Inc was also in focus after the company opened its first retail store in India and extended its retail network in one of its fastest growing markets for its products.
Apple is in the middle of diversifying away from its manufacturing base from China to India and the maker of popular computing devices is also looking to ramp up its sales.
In the latest financial year, Apple sales in India jumped to $6 billion and analysts are estimating that the company can sustain a growth rate upwards of 30% for several years.
In the U.S., Apple launched its Apple Card savings account with no minimum deposit or balance and offered 4.15% annual percentage yield.
Indexes & Yields
The S&P 500 index increased 2.67 points to 4,153.80 and the Nasdaq Composite index fell 10.95 points to 12,144.45.
The yield on 2-year Treasury notes increased 2 basis points to 4.21%, 10-year Treasury notes fell 1 basis point to 3.57% and 30-year Treasury bonds jumped 2 basis points to 3.82%.
Crude oil declined 19 cents to $80.63 a barrel and natural gas futures rose 9 cents to $2.36 a thermal unit.
U.S. Stock Movers
Bank of America increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin.
Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus.
Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results.
Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago.
The company paid $784 million in dividends and $500 million of its own shares in the first quarter.
Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion.
The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago.
Adjusted earnings, which excludes special items and amortization expenses, fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.
European Markets Approached Record Territory
The European markets advanced in cautious trading as investors remained focused on corporate earnings.
Benchmark indexes opened slightly higher but extended gains and the French index traded at a new record high after China's economy expanded at a faster pace in the first quarter.
China's GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world's second largest economy may exceed the 5.0% growth target set by the government in 2023.
Meanwhile, investors overlooked the weakening of the German investor morale in April and the UK's annual wage growth was significantly ahead of market expectations.
UK Wage Growth Ahead of Expectations
Average weekly earnings from a year ago in three months to February rose 5.9% to £638.0, the Office for National Statistics said Tuesday.
Regular pay, which excludes bonus, increased 6.6% to £596.0, ahead of expectations of 6.2% set by some economists.
Regular wages adjusted for inflation fell 3% and excluding bonus declined 2.3%, the largest decline since 2009.
Italy's Foreign Trade Swung to Surplus
Italy's foreign trade swung to surplus after exports rose faster than imports, the statistical agency Istat reported Tuesday.
Total exports not adjusted for seasonal factors increased to Є52.44 billion and imports rose to Є50.34 billion, resulting in trade surplus of Є2.2018 billion.
Italy's non-seasonally adjusted merchandise trade swung to a surplus of Є2.108 billion from a deficit of Є1.475 billion. Excluding energy, trade surplus rose to Є7.9 billion.
On a seasonally adjusted basis, trade surplus increased to Є2.9 billion from Є1.99 billion in January after imports declined for the sixth month in a row.
Non-seasonally adjusted exports increased 10.8% from a year ago in February following 15.5% in the previous month and imports rose at a slower pace of 3.6% from 8.6% in January.
Import prices in February fell 1.7% from the previous month but rose 1.3% from a year ago.
For the first quarter ending in March, non-seasonally adjusted trade deficit was Є2.128 billion.
Indexes & Yields
The DAX index increased 0.6% to 15,882.67, the CAC-40 index added 0.5% to 7,533.63 and the FTSE 100 index advanced 0.4% to 7,909.44.
The yield on 10-year German Bunds inched higher to 2.46%. French bonds hovered near 2.95%, the UK gilts to 3.71% and Italian bonds to 4.28%.
The euro edged lower to $1.097, the British pound traded down to $1.241 and the Swiss franc trended lower to 89.66 cents.
Brent crude was nearly unchanged at $84.79 a barrel and the Dutch TTF natural gas edged up 26 cents to Є42.72 per MWh.
Europe Stock Movers
easyJet plc increased 0.9% to 515.68 pence after the deep discount airline forecasted full-year profit is likely to exceed market expectations.
UBS Group AG increased 1.2% to Sfr 18.95 after the Swiss bank said it may use some of the shares held in treasury instead of canceling them for the purchase of Credit Suisse.
MTU Aero Engines AG increased 1.3% to €240.30 after the maker of military engines reported better-than-expected revenue.
MTU Aero said first quarter revenue increased to €1.54 billion and adjusted earnings of €212 million.
The preliminary first quarter results are ahead of the market expectations of 1.4 billion in revenue and 172 million in adjusted earnings.
Free cash in the quarter was €93 million, lower than market estimate of €97 million.
The company said it will release the first quarter financial results on April 26.
LM Ericsson dropped 6.6% to SEK 58.32 despite the Swedish telecom equipment maker reporting better-than-expected core earnings in the first quarter.
Net sales in the first quarter increased 14% to SEK62.6 billion but net income plunged 46% to SEK 1.6 billion from SEK 2.9 billion and diluted earnings per share declined to SEK0.45 from SEK0.88 a year ago.
Housing Construction Activities Eased in March
Brian Turner
18 Apr, 2023
New York City
Housing starts in March declined 0.8% from the previous month to a seasonally adjusted annual rate of 1.42 million, following the downwardly revised 7.3% increase in February.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported housing permits, starts and completions Tuesday.
Single‐family housing starts in March increased 2.7% to 861,000 from the revised February starts of 838,000 units.
Building permits in March declined 8.8% to 1.41 million units from the revised rate of 1.55 million in February and dropped 24.8% from a year ago rate of 1.897 million rate.
Building completion rate was a seasonally adjusted rate of 1.542 million, a decline of 0.8% from the February rate of 1.552 million and 12.9% above the rate of 1.366 million a year ago.
Movers: Bank of America, Goldman Sachs, Lockheed Martin, Johnson & Johnson
Scott Peters
18 Apr, 2023
New York City
Bank of America Corp increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin.
Total revenue, net of interest expense, in the first quarter increased 13% to $26.3 billion and net income increased to $7.6 billion from $6.6 billion and diluted earnings per share increased to 94 cents from 85 cents a year ago.
Client balances declined 2% from a year ago to $1.6 trillion but rose 2% from the fourth quarter and the bank increased its provision for loan losses to $931 million from $30 million a year ago largely driven by credit card balances.
Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus.
Revenue in the first quarter ending in March decreased 5% to $12.2 billion from $12.9 billion.
Investment banking fees declined 26% to $1.6 billion, bonds, currencies and commodities business dropped 17% to $3.9 billion and equities segment revenue decreased 7% to $3.0 billion.
Asset and wealth management revenue rose 24% to $3.2 billion and platform solutions revenue soared 110% to $564 million.
Net income applicable to common stockholders fell 19% to $3.1 billion from $3.8 billion and diluted earnings per share fell to $8.79 from $10.76 a year ago.
Provision for credit losses was a net gain of $171 million for the first quarter, compared with net provisions of $561 million for the first quarter of 2022 and $972 million for the fourth quarter of 2022.
Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results.
Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago.
The company paid $784 million in dividends and $500 million of its own shares in the first quarter.
Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion.
The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago.
Adjusted earnings, which excludes special items and amortization expenses, fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.
U.S. Indexes Traded In Tight Range as Earnings Roll In
Barry Adams
18 Apr, 2023
New York City
Market indexes advanced in the first hour of trading as investors reacted to the fresh batch of earnings.
Investors remained focused on quarterly results and poured over bank results to get deeper insights in the health of the banking system.
Commodities prices attempted a rebound after China reported better-than-expected growth in the first quarter.
China\'s GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world\\\'s second largest economy may exceed the 5.0% growth target set by the government in 2023.
Apple Inc was also in focus after the company opened its first retail store in India and extended its retail network in one of its fastest growing markets.
Apple is in the middle of diversifying away from its manufacturing base from China to India and the maker of popular computing devices is also looking to ramp up its sales.
In the latest financial year, Apple sales in India jumped to $6 billion and analysts are estimating that the company can sustain a growth rate upwards of 30% for several years.
Indexes & Yields
The S&P 500 index increased 0.3% to 4,166.05 and the Nasdaq Composite index advanced 0.6% to 12,226.51.
The yield on 2-year Treasury notes increased 2 basis points to 4.21%, 10-year Treasury notes fell 1 basis point to 3.57% and 30-year Treasury bonds jumped 2 basis points to 3.82%.
Crude oil declined 24 cents to $80.55 a barrel and natural gas futures rose 2 cents to $2.30 a thermal unit.
U.S. Stock Movers
Bank of America increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin.
Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus.
Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results.
Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago.
The company paid $784 million in dividends and $500 million of its own shares in the first quarter.
Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion.
The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago.
Adjusted earnings, which excludes special items and amortization expenses, fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.
Earnings Optimism Drives European Markets to Record Territory
Bridgette Randall
18 Apr, 2023
Frankfurt
The European markets advanced in cautious trading as investors remained focused on corporate earnings.
Benchmark indexes opened slightly higher but extended gains and the French index traded at a new record high after China\\\'s economy expanded at a faster pace in the first quarter.
China\\\'s GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world\\\'s second largest economy may exceed the 5.0% growth target set by the government in 2023.
Meanwhile, investors overlooked the weakening of the German investor morale in April and the UK\\\'s annual wage growth was significantly ahead of market expectations.
UK Wage Growth Ahead of Expectations
Average weekly earnings from a year ago in three months to February rose 5.9% to £638.0, the Office for National Statistics said Tuesday.
Regular pay, which excludes bonus, increased 6.6% to £596.0, ahead of expectations of 6.2% set by some economists.
Regular wages adjusted for inflation fell 3% and excluding bonus declined 2.3%, the largest decline since 2009.
Italy\\\'s Foreign Trade Swung to Surplus
Italy\\\'s foreign trade swung to surplus after exports rose faster than imports, the statistical agency Istat reported Tuesday.
Total exports not adjusted for seasonal factors increased to Є52.44 billion and imports rose to Є50.34 billion, resulting in trade surplus of Є2.2018 billion.
Italy\\\'s non-seasonally adjusted merchandise trade swung to a surplus of Є2.108 billion from a deficit of Є1.475 billion. Excluding energy, trade surplus rose to Є7.9 billion.
On a seasonally adjusted basis, trade surplus increased to Є2.9 billion from Є1.99 billion in January after imports declined for the sixth month in a row.
Non-seasonally adjusted exports increased 10.8% from a year ago in February following 15.5% in the previous month and imports rose at a slower pace of 3.6% from 8.6% in January.
Import prices in February fell 1.7% from the previous month but rose 1.3% from a year ago.
For the first quarter ending in March, non-seasonally adjusted trade deficit was Є2.128 billion.
Indexes & Yields
The DAX index increased 0.5% to 15,863.23, the CAC-40 index added 0.5% to 7,537.29 and the FTSE 100 index advanced 0.2% to 7,537.29.
The yield on 10-year German Bunds inched higher to 2.46%. French bonds hovered near 2.95%, the UK gilts to 3.71% and Italian bonds to 4.28%.
The euro edged lower to $1.097, the British pound traded down to $1.241 and the Swiss franc trended lower to 89.66 cents.
Brent crude was nearly unchanged at $84.76 a barrel and the Dutch TTF natural gas edged up 26 cents to Є41.79 per MWh.
Europe Stock Movers
easyJet plc increased 0.9% to 515.68 pence after the deep discount airline forecasted full-year profit is likely to exceed market expectations.
UBS Group AG increased 1.2% to Sfr 18.95 after the Swiss bank said it may use some of the shares held in treasury instead of canceling them for the purchase of Credit Suisse.
MTU Aero Engines AG increased 1.3% to €240.30 after the maker of military engines reported better-than-expected revenue.
MTU Aero said first quarter revenue increased to €1.54 billion and adjusted earnings of €212 million.
The preliminary first quarter results are ahead of the market expectations of 1.4 billion in revenue and 172 million in adjusted earnings.
Free cash in the quarter was €93 million, lower than market estimate of €97 million.
The company said it will release the first quarter financial results on April 26.
LM Ericsson dropped 6.6% to SEK 58.32 despite the Swedish telecom equipment maker reporting better-than-expected core earnings in the first quarter.
Net sales in the first quarter increased 14% to SEK62.6 billion but net income plunged 46% to SEK 1.6 billion from SEK 2.9 billion and diluted earnings per share declined to SEK0.45 from SEK0.88 a year ago.
Beijing's Stimulus Measures Support First Quarter GDP Rebound
Brian Turner
18 Apr, 2023
New York City
China's economy expanded at a faster pace in the first quarter, the National Bureau of Statistics reported Tuesday.
GDP in the first quarter gained 4.5% from a year ago after rising 2.9% in the fourth quarter as activities picked up at the fastest pace in a year after the ending of strict zero-covid policy.
The Chinese government has set 2023's economic growth target of around 5.0%.
Domestic production and demand challenges and macroeconomic headwinds for exports may pose a challenge in the near term but the raft of infrastructure spending announced by the government is likely to kick the economy in the higher gear in the third and the final quarter of the year.
Retail sales soared 10.6% in March, significantly higher than 3.5% in February, driven 11.5% rebound in vehicle sales and 37.4% jump in precious jewelry sales.
Retail sales rose at the fastest pace since June 2021.
Industrial production increased 3.9% in March following a 2.4% rise in January-February period driven by higher output from manufacturing and utilities but mining activities shrank.
Industrial production rose at the fastest pace since October.
Fixed-assets investment increase slowed to an annual pace of 5.1% in the first quarter from the 5.5% rise in the first two-month period.
China's economic recovery is expected to be uneven in the months ahead on the worries about the strength of domestic demand and uncertainties about exports.
“We must be aware that the situation abroad is still complex and volatile, inadequate domestic demand remains prominent and the foundation for economic recovery is not solid yet," said NBS spokesman Fu Linghui.
The jobless rate in March eased to 5.3% from 5.6% in February but the advanced electronics manufacturing industry continued to shrink after exports of electronics products fell.
Micro computing devices manufacturing fell 21.6% in March, mobile phone production declined 7.6% and integrated circuits output fell 3%.