China’s retail sales experienced stronger-than-expected growth last month, according to official data released Monday, offering a positive signal for the world’s second-largest economy amidst its ongoing trade dispute with the United States.
The National Bureau of Statistics (NBS) reported that a key gauge of consumer demand rose by 6.4 percent year-on-year in May. This figure surpassed the 4.9 percent growth forecast in a Bloomberg survey of economists and marked a significant increase from April’s 5.1 percent rise.
However, the NBS also indicated that industrial production grew at a below-par rate of 5.8 percent. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, noted that the retail sales figures “came as a surprise” but cautioned that the economic outlook for the remainder of the year remains uncertain.
The NBS stated that the economy “maintained stability” last month as authorities “stepped up the implementation of more proactive and effective macro policies.” Despite this, it added that “there are still many unstable and uncertain external factors, and the internal momentum for expanding domestic demand needs to be further strengthened.”
Beijing has grappled with sustaining robust growth since the pandemic, facing deep-seated domestic challenges, including a persistent slump in domestic consumption and a debt crisis within the property sector. The NBS also reported that commercial property prices in a representative group of 70 cities fell month-on-month in May, reflecting continued consumer caution.
The surveyed unemployment rate, a critical figure as millions of young people struggle to secure suitable employment, edged down to 5.0 percent in May from 5.1 percent the previous month. China has set an economic growth target of approximately 5 percent for the current year.
The economic landscape is further complicated by trade tensions with Washington, which escalated into a grueling tit-for-tat tariff war following U.S. President Donald Trump’s inauguration in January. While both sides have since agreed to a pause on retaliatory levies, a lasting deal has yet to be announced. Trade delegations met in London this month for a second round of high-stakes talks, with President Trump stating that the superpowers had reached an agreement to preserve a truce. Li Chenggang, head of the Chinese team, described communication with the U.S. as “very professional,” but did not confirm whether an accord had been reached.
*
Email *
Website
