economy
China economy weakens further in May as retail sales post first drop in over three years
China's retail sales fell for the first time in more than three years in May, while urban investment contracted more than expected, adding to signs the economic slump deepened.
TL;DR
- China's retail sales fell 0.6% year-on-year in May, marking the first decline since December 2022.
- Urban fixed-asset investment contracted 4.1% as of end-May, with real estate inflows down 16.2%.
- Manufacturing fixed-asset investment contracted for the first time since December 2020.
- Industrial output was a bright spot, increasing 4.5% in May.
- The national unemployment rate decreased to 5.1% in May from 5.2% in April.
- The economy faces an imbalance of strong supply and weak demand, pressuring Beijing for stimulus.
- Exports remained strong, benefiting from demand for renewables and AI-related products.
- Producer inflation rose significantly, while consumer inflation remained modest due to weak demand and firms absorbing costs.