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China economy weakens further in May as retail sales post first drop in over three years
Urban fixed-asset investment fell 4.1% through May as real estate investment plunged 16.2%, underscoring weak demand despite stronger industrial output.
- On Tuesday, the National Bureau of Statistics reported China's retail sales fell 0.6% in May, marking the first monthly decline since December 2022. Urban fixed-asset investment contracted 4.1% during the first five months of the year.
- Economic data reveals a widening 'K-shaped' growth pattern, where robust manufacturing and export sectors contrast with persistent weakness in property and consumer spending. Exports recorded a 19.4% gain, yet this performance has not filtered through to domestic consumption.
- Industrial output rose 4.5% in May, though the official manufacturing gauge slowed to 50, hovering at the threshold between expansion and contraction. Property investment flows plunged 16.2% during the January to May period, deepening the investment slump.
- Despite the national unemployment rate easing to 5.1% in May, weak consumer demand prevents producer price gains from filtering into the broader economy, with consumer inflation remaining modest at 1.2%. The Labour Day holiday failed to offset these trends.
- Weak household loan data suggests consumers remain wary of borrowing for housing amid sluggish income growth and job insecurity, while anxiety over potential AI-related labor displacement persists. These headwinds complicate efforts to sustain growth momentum.
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19 Articles
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·Milan, Italy
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China retail sales drop for first time in 3 years but exports surge
Retail sales decreased by 0.6 per cent year on year in May, a first fall since China withdrew its Covid-19 lockdown at the end of 2022, and down from a 0.2 per cent spike in April, the National Bureau of Statistics (NBS) data showed on Tuesday.
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Coverage Details
Total News Sources19
Leaning Left5Leaning Right6Center4Last UpdatedBias Distribution40% Right
Bias Distribution
- 40% of the sources lean Right
40% Right
L 33%
C 27%
R 40%
Factuality
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