Chinese consumer demand is up, with retail sales rising 14.8 percent in April, reveals the Chinese National Bureau of Statistics. However, industrial output growth is still low, dampening enthusiasm about economic recovery. The strongest sales were in food, clothing, automotives and homewares. Chinese exports have faltered, plunging 22.6 percent compared with last year's figures, but inbound investment for the Asian giant has increased. Industrial output rose just 7.3 percent, which was lower than initially forecast, and down on the 8.3 percent growth seen in the previous month. The strongest sector was automotives with both production and sales up, though economists have pointed out that this was largely due to tax cuts aimed at promoting the sale of fuel-efficient vehicles. "Incentive-driven demand may last only as long as the government tax breaks and subsidies remain in place," said chairwoman for China Equities Jing Ulrich. Ulrich believes the full effect of the Chinese stimulus package has not yet been felt: "The rollout of China's fiscal stimulus package will spur demand in a wide range of industries, supporting increased production in the months to come."